Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2023-08-03 For: 2023-08-03
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):   August 3, 2023

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 August 3, 2023 ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2023. 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 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b) On August 3, 2023, Ms. Jody Freeman resigned as a member of the Board of Directors (the “Board”) of ConocoPhillips. Ms. Freeman’s decision to resign was not the result of any disagreement with management or the Board but was in order to more fully pursue other commitments.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description
99.1 —      Press release issued by ConocoPhillips on August 3,<br> 2023.
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99.2 —      Supplemental financial information.
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104 —      Cover Page Interactive Data File (formatted as Inline<br> XBRL and filed herewith).
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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/ Christopher P. Delk
Christopher P. Delk
Vice President, Controller and General Tax Counsel

August 3, 2023

3

Exhibit 99.1

ConocoPhillips Reports Second-Quarter 2023 Results; Raises Full-Year Production Guidance and Declares Quarterly Dividend and Variable Return of Cash Distribution

HOUSTON--(BUSINESS WIRE)--August 3, 2023--ConocoPhillips (NYSE: COP) today reported second-quarter 2023 earnings and adjusted earnings of $2.2 billion, or $1.84 per share, compared with second-quarter 2022 earnings of $5.1 billion, or $3.96 per share, and second-quarter 2022 adjusted earnings of $5.1 billion, or $3.91 per share.

“The second quarter demonstrated our strong underlying performance and commitment to advancing the returns-focused value proposition we shared at our Analyst & Investor Meeting in April,” said Ryan Lance, chairman and chief executive officer. “We achieved record production and increased our full-year production guidance for the second consecutive quarter. We executed an agreement to purchase the remaining 50% interest in Surmont and further progressed our global LNG strategy. Our full-year distribution target of $11 billion remains unchanged. Looking ahead, we remain constructive on the second half of the year as well as the long-term outlook for the sector. By continuing to enhance our deep, durable and diversified asset base, we are well positioned to generate competitive cash flow and returns for decades.”

Second-Quarter Highlights and Recent Announcements

  • Delivered record company and Lower 48 production of 1,805 thousand barrels of oil equivalent per day (MBOED) and 1,063 MBOED, respectively.
  • Executed agreement to purchase the remaining 50% interest in Surmont, subject to regulatory approvals and other closing conditions.
  • Completed acquisition of an equity interest in Qatar’s North Field South project.
  • Signed 20-year offtake agreements at the Saguaro LNG export facility on the west coast of Mexico for approximately 2.2 million tonnes per annum, subject to Mexico Pacific reaching final investment decision.
  • Generated cash provided by operating activities of $3.9 billion and cash from operations (CFO) of $4.7 billion.
  • Distributed $2.7 billion to shareholders through a three-tier framework, including $1.4 billion through the ordinary dividend and variable return of cash (VROC) and $1.3 billion through share repurchases.
  • Ended the quarter with cash and short-term investments of $7.1 billion.

Quarterly Dividend and Variable Return of Cash

ConocoPhillips announced a quarterly ordinary dividend of $0.51 per share, payable September 1, 2023, to stockholders of record at the close of business on August 16, 2023. In addition, the company announced a VROC of $0.60 per share, payable October 16, 2023, to stockholders of record at the close of business on September 28, 2023.

Second-Quarter Review

Production for the second quarter of 2023 was 1,805 MBOED, an increase of 113 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, second-quarter 2023 production increased 100 MBOED or 6% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline and downtime.

Lower 48 delivered record production of 1,063 MBOED, including 709 MBOED from the Permian, 235 MBOED from the Eagle Ford and 104 MBOED from the Bakken. Turnarounds were successfully completed in Norway and Qatar.

Earnings and adjusted earnings decreased from the second quarter of 2022 primarily due to lower prices partially offset by increased volumes. The company’s total average realized price was $54.50 per BOE, 38% lower than the $88.57 per BOE realized in the second quarter of 2022.

For the quarter, cash provided by operating activities was $3.9 billion. Excluding a $0.8 billion change in working capital, ConocoPhillips generated CFO of $4.7 billion and received $0.2 billion primarily related to a prior year disposition. The company funded $2.9 billion of capital expenditures and investments. In addition, the company paid $1.4 billion in ordinary dividends and VROC and repurchased $1.3 billion of shares.

Six-Month Review

ConocoPhillips’ six-month 2023 earnings and adjusted earnings were $5.2 billion, or $4.22 per share, compared with six-month 2022 earnings of $10.9 billion, or $8.36 per share, and six-month 2022 adjusted earnings of $9.4 billion, or $7.18 per share.

Production for the first six months of 2023 was 1,798 MBOED, an increase of 78 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, production increased 82 MBOED or 5% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline and downtime.

The company’s total realized price during this period was $57.63 per BOE, 30% lower than the $82.70 per BOE realized in the first six months of 2022.

In the first six months of 2023, cash provided by operating activities was $9.3 billion. Excluding a $1.1 billion change in working capital, ConocoPhillips generated CFO of $10.4 billion and received disposition proceeds of $0.4 billion. The company funded $5.8 billion of capital expenditures and investments, repurchased $3.0 billion of shares and paid $2.8 billion in ordinary dividends and VROC.

Outlook

Third-quarter 2023 production is expected to be 1.78 to 1.82 million barrels of oil equivalent per day (MMBOED). Full-year production is now expected to be 1.80 to 1.81 MMBOED, as compared to prior guidance of 1.78 to 1.80 MMBOED.

Consistent with raising full-year production guidance for two consecutive quarters, the company updated its 2023 adjusted operating cost guidance to $8.3 billion versus the prior guidance of $8.2 billion and updated full-year guidance for depreciation, depletion and amortization to $8.2 billion versus the prior guidance of $8.1 billion. Full-year guidance for adjusted corporate segment net loss has been lowered to $0.8 billion from $0.9 billion driven by lower net interest expense. On capital, the guidance range has been narrowed to $10.8 to $11.2 billion from $10.7 to $11.3 billion, reflecting ongoing progress on the company’s development plans.

All guidance excludes any impact from the previously announced Surmont and APLNG transactions.

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.

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About ConocoPhillips

ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $90 billion of total assets, and approximately 9,700 employees at June 30, 2023. Production averaged 1,798 MBOED for the six months ended June 30, 2023, and proved reserves were 6.6 BBOE as of December 31, 2022. 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 changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from any ongoing military conflict, including the conflict between Russia and Ukraine, and the global response to such conflict, security threats on facilities and infrastructure, or 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; insufficient liquidity or other factors, such as those listed herein, that could impact our ability to repurchase shares and declare and pay dividends such that we suspend our share repurchase program and reduce, suspend, or totally eliminate dividend payments in the future, whether variable or fixed; 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, inflationary pressures or technical difficulties in constructing, maintaining or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; public health crises, including pandemics (such as COVID-19) and epidemics and any impacts or related company or government policies or actions; investment in and development of competing or alternative energy sources; potential failures or delays in delivering on our current or future low-carbon strategy, including our inability to develop new technologies; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business, including any sanctions imposed as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; our ability to collect payments when due, including our ability to collect payments from the government of Venezuela or PDVSA; our ability to complete any announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for 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 following any announced or 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 directly or indirectly to our transaction with Concho Resources Inc.; the impact of competition and consolidation in the oil and gas industry; limited access to capital or insurance or significantly higher cost of capital or insurance related to illiquidity or uncertainty in the domestic or international financial markets or investor sentiment; general domestic and international economic and political conditions or developments, including as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from accidents, extraordinary weather events, civil unrest, political events, war, terrorism, cybersecurity threats or information technology failures, constraints or disruptions; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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

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

The company believes that the non-GAAP measure adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss is 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. Adjusted operating costs is defined 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 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. Adjusted corporate segment net loss is defined as corporate and other segment earnings adjusted for special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

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

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

Other Terms – This news release also contains the term pro forma underlying production. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of June 30, 2023. The impact of closed acquisitions and dispositions assumes a closing date of January 1, 2022. The company believes that underlying production is useful to investors to compare production reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies. Return of capital or company distributions is defined as the total of the ordinary dividend, share repurchases and variable return of cash (VROC).

References in the release to earnings refer to net income.

ConocoPhillips
Table 1: Reconciliation of earnings to adjusted earnings
Millions, Except as Indicated
2Q22 2023 YTD 2022 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 $ 2,232 1.84 $ 5,145 3.96 $ 5,152 4.22 $ 10,904 8.36
Adjustments:
Net gain on asset sales - - - (254 ) 57 (197 ) (0.15 ) - - - - (1,017 ) 110 (907 ) (0.70 )
Tax adjustments - - - - 58 58 0.04 - - - - - (407 ) (407 ) (0.32 )
(Gain) loss on CVE shares - - - - - - - - - - - (251 ) - (251 ) (0.20 )
(Gain) loss on debt extinguishment and exchange fees - - - 83 (13 ) 70 0.05 - - - - (44 ) 52 8 0.01
Transaction and restructuring expenses - - - 14 (4 ) 10 0.01 - - - - 28 (8 ) 20 0.02
(Gain) Loss on FX derivative - - - - - - - - - - - 10 (2 ) 8 0.01
Adjusted earnings / (loss) $ 2,232 1.84 $ 5,086 3.91 $ 5,152 4.22 $ 9,375 7.18
The income tax effects of the special items are primarily<br> calculated based on the statutory rate 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
2Q23 2Q22 2023 YTD 2022 YTD
Total Reported ConocoPhillips Production 1,805 1,692 1,798 1,720
Closed Dispositions^1^ (2 ) (12 ) (2 ) (34 )
Closed Acquisitions ^2^ - 13 - 18
Total Pro Forma Underlying Production 1,803 1,693 1,796 1,704
Estimated Uplift from 2 to 3 stream conversion^3^ - 10 - 10
^1^Includes production related to the Indonesia disposition and various Lower 48 dispositions.
^2^Includes production related to the acquisitions related to additional 10% shareholding interest in APLNG, additional 4% shareholding interest in Libya and a Lower 48 bolt-on acquisition.
^3^Estimated production impacts from the conversion of Concho two-stream contracted volumes to a three-stream (crude oil, natural gas and natural gas liquids) reporting basis, which are not included in Total Production and Total Underlying Production.
ConocoPhillips
Table 3: Reconciliation of net cash provided by operating activities to cash from operations
Millions, Except as Indicated
2023 YTD
Net Cash Provided by Operating Activities 9,257
Adjustments:
Net operating working capital changes ) (1,128 )
Cash from operations 10,385

All values are in US Dollars.

ConocoPhillips
Table 4: Reconciliation of production and operating expenses to adjusted operating costs
Millions, Except as Indicated
Production and operating expenses
Selling, general and administrative (G&A) expenses
Exploration G&A, G&G and lease rentals
Operating costs
Adjustments to exclude special items:
None
Adjusted operating costs
ConocoPhillips
Table 5: Reconciliation of adjusted corporate segment net loss
Millions, Except as Indicated
Corporate and Other earnings
Adjustments to exclude special items:
None
Adjusted corporate segment net loss

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

Second-Quarter 2023 Detailed Supplemental Information
2022 2023
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions, Except as Indicated
CONSOLIDATED INCOME STATEMENT
Revenues and Other Income
Sales and other operating revenues 17,762 21,161 21,013 18,558 78,494 14,811 12,351 27,162
Equity in earnings of affiliates 426 524 561 570 2,081 499 412 911
Gain (loss) on dispositions 817 262 (40 ) 38 1,077 93 (1 ) 92
Other income 286 42 80 96 504 114 122 236
Total Revenues and Other Income 19,291 21,989 21,614 19,262 82,156 15,517 12,884 28,401
Costs and Expenses
Purchased commodities 6,751 9,234 9,251 8,735 33,971 6,138 4,616 10,754
Production and operating expenses 1,581 1,741 1,799 1,885 7,006 1,779 1,886 3,665
Selling, general and administrative expenses 187 96 148 192 623 159 205 364
Exploration expenses 69 143 89 263 564 138 83 221
Depreciation, depletion and amortization 1,823 1,810 1,872 1,999 7,504 1,942 2,010 3,952
Impairments 2 2 2 (18 ) (12 ) 1 - 1
Taxes other than income taxes 814 1,020 843 687 3,364 576 512 1,088
Accretion on discounted liabilities 61 61 60 68 250 68 68 136
Interest and debt expense 217 211 199 178 805 188 179 367
Foreign currency transactions (gain) loss 24 (70 ) (93 ) 39 (100 ) (44 ) (14 ) (58 )
Other expenses (136 ) 86 4 (1 ) (47 ) 10 (23 ) (13 )
Total Costs and Expenses 11,393 14,334 14,174 14,027 53,928 10,955 9,522 20,477
Income before income taxes 7,898 7,655 7,440 5,235 28,228 4,562 3,362 7,924
Income tax provision 2,139 2,510 2,913 1,986 9,548 1,642 1,130 2,772
Net Income 5,759 5,145 4,527 3,249 18,680 2,920 2,232 5,152
Net Income Per Share of Common Stock (dollars)
Basic 4.41 3.98 3.56 2.61 14.62 2.38 1.84 4.23
Diluted 4.39 3.96 3.55 2.61 14.57 2.38 1.84 4.22
Average Common Shares Outstanding (in thousands)*
Basic 1,301,930 1,289,791 1,256,893 1,239,277 1,274,028 1,220,228 1,207,443 1,213,800
Diluted 1,307,404 1,295,844 1,269,321 1,243,037 1,278,163 1,223,355 1,210,342 1,216,743
*Ending Common Shares Outstanding is 1,197,491 as of June 30, 2023, compared with 1,210,059 as of March 31, 2023.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 802 983 800 652 3,237 567 510 1,077
Lower 48 3,547 4,456 3,542 2,557 14,102 2,378 1,581 3,959
Canada 381 418 158 (37 ) 920 8 43 51
Europe, Middle East and North Africa 1,774 1,533 2,615 1,767 7,689 1,244 982 2,226
Asia Pacific 1,310 637 627 643 3,217 582 451 1,033
Other International - - 2 - 2 1 (5 ) (4 )
Corporate and Other 84 (372 ) (304 ) (347 ) (939 ) (218 ) (200 ) (418 )
Consolidated 7,898 7,655 7,440 5,235 28,228 4,562 3,362 7,924
EFFECTIVE INCOME TAX RATES
Alaska* 27.1 % 30.1 % 27.6 % 23.1 % 27.4 % 26.7 % 27.0 % 26.8 %
Lower 48 21.4 % 19.6 % 25.1 % 22.1 % 21.9 % 22.1 % 22.2 % 22.2 %
Canada 23.7 % 24.3 % 24.9 % 67.4 % 22.4 % 21.9 % 26.6 % 25.9 %
Europe, Middle East and North Africa 76.8 % 74.9 % 64.7 % 70.3 % 70.8 % 70.6 % 73.1 % 71.7 %
Asia Pacific 13.3 % 17.7 % 16.9 % 13.6 % 14.9 % 10.3 % 14.1 % 11.9 %
Other International -137.8 % 43.0 % 2484.7 % 3159.7 % 2211.2 % - - -
Corporate and Other -546.2 % 6.2 % 21.4 % 17.1 % 64.9 % -11.3 % 75.9 % 30.5 %
Consolidated 27.1 % 32.8 % 39.1 % 37.9 % 33.8 % 36.0 % 33.6 % 35.0 %
*Alaska including taxes other than income taxes. 47.8 % 52.1 % 48.6 % 43.0 % 48.4 % 42.3 % 41.1 % 41.7 %

All values are in US Dollars.

2022 2023
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
EARNINGS BY SEGMENT
Alaska 584 687 580 501 2,352 416 372 788
Lower 48 2,790 3,581 2,653 1,991 11,015 1,852 1,230 3,082
Canada 291 316 119 (12 ) 714 6 32 38
Europe, Middle East and North Africa 412 385 922 525 2,244 365 264 629
Asia Pacific 1,136 525 520 555 2,736 522 387 909
Other International - - (28 ) (23 ) (51 ) 1 (4 ) (3 )
Corporate and Other 546 (349 ) (239 ) (288 ) (330 ) (242 ) (49 ) (291 )
Consolidated 5,759 5,145 4,527 3,249 18,680 2,920 2,232 5,152
SPECIAL ITEMS
Alaska 23 - - 26 49 - - -
Lower 48 16 69 (42 ) 16 59 - - -
Canada 176 118 (12 ) (82 ) 200 - - -
Europe, Middle East and North Africa - (58 ) - - (58 ) - - -
Asia Pacific 534 - 27 - 561 - - -
Other International - - (29 ) (20 ) (49 ) - - -
Corporate and Other 721 (70 ) (7 ) (66 ) 578 - - -
Consolidated 1,470 59 (63 ) (126 ) 1,340 - - -
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 561 687 580 475 2,303 416 372 788
Lower 48 2,774 3,512 2,695 1,975 10,956 1,852 1,230 3,082
Canada 115 198 131 70 514 6 32 38
Europe, Middle East and North Africa 412 443 922 525 2,302 365 264 629
Asia Pacific 602 525 493 555 2,175 522 387 909
Other International - - 1 (3 ) (2 ) 1 (4 ) (3 )
Corporate and Other (175 ) (279 ) (232 ) (222 ) (908 ) (242 ) (49 ) (291 )
Consolidated 4,289 5,086 4,590 3,375 17,340 2,920 2,232 5,152
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 30.0 % 30.1 % 27.6 % 27.1 % 28.9 % 26.7 % 27.0 % 26.8 %
Lower 48 22.1 % 19.6 % 25.1 % 22.1 % 22.1 % 22.1 % 22.2 % 22.2 %
Canada 24.4 % 25.1 % 24.5 % 24.0 % 24.6 % 21.9 % 26.6 % 25.9 %
Europe, Middle East and North Africa 76.8 % 71.1 % 64.7 % 70.3 % 70.1 % 70.6 % 73.1 % 71.7 %
Asia Pacific 22.4 % 17.7 % 17.7 % 13.6 % 18.1 % 10.3 % 14.1 % 11.9 %
Other International -137.8 % 43.0 % 16.8 % 500.9 % 168.2 % - - -
Corporate and Other 38.1 % 3.4 % 21.9 % 14.8 % 19.6 % -11.3 % 75.9 % 30.5 %
Consolidated 36.8 % 32.2 % 38.7 % 37.8 % 36.2 % 36.0 % 33.6 % 35.0 %

All values are in US Dollars.

2022 2023
$ Millions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
DETAILED SPECIAL ITEMS
Alaska
Income tax provision (benefit)^1^ (23 ) - - (26 ) (49 ) - - -
Total 23 - - 26 49 - - -
Lower 48
Transaction and restructuring expenses (14 ) (14 ) - - (28 ) - - -
Gain (loss) on asset sales - 101 (55 ) 21 67 - - -
Subtotal before income taxes (14 ) 87 (55 ) 21 39 - - -
Income tax provision (benefit)^2^ (30 ) 18 (13 ) 5 (20 ) - - -
Total 16 69 (42 ) 16 59 - - -
Canada
Exploration Expense - - - (129 ) (129 ) - - -
Gain (loss) on asset sales 229 153 (15 ) - 367 - - -
Subtotal before income taxes 229 153 (15 ) (129 ) 238 - - -
Income tax provision (benefit)^3^ 53 35 (3 ) (47 ) 38 - - -
Total 176 118 (12 ) (82 ) 200 - - -
Europe, Middle East and North Africa
Income tax provision (benefit)^4^ - 58 - - 58 - - -
Total - (58 ) - - (58 ) - - -
Asia Pacific
Gain (loss) on asset sales 534 - - - 534 - - -
Pending claims and settlements - - 27 - 27 - - -
Subtotal before income taxes 534 - 27 - 561 - - -
Income tax provision (benefit) - - - - - - - -
Total 534 - 27 - 561 - - -
Other International
Income tax provision (benefit)^5^ - - 29 20 49 - - -
Total - - (29 ) (20 ) (49 ) - - -
Corporate and Other
Pending claims and settlements - - (7 ) (87 ) (94 ) - - -
Gain (loss) on investment in Cenovus Energy 251 - - - 251 - - -
Gain (loss) on AUD FX derivative (10 ) - - - (10 ) - - -
Gain (loss) on debt extinguishment and exchange fees 127 (83 ) - - 44 - - -
Subtotal before income taxes 368 (83 ) (7 ) (87 ) 191 - - -
Income tax provision (benefit)^6^ (353 ) (13 ) - (21 ) (387 ) - - -
Total 721 (70 ) (7 ) (66 ) 578 - - -
Total Company 1,470 59 (63 ) (126 ) 1,340 - - -
^1^Includes a tax adjustment in Q1 2022 related to the closure of an audit; Q4 2022 tax adjustment in Alaska.
^2^Includes a tax adjustment in Q1 2022 related to the closure of an audit.
^3^Includes a tax adjustment in Q4 2022 related to pending claims and settlements.
^4^Includes a tax adjustment in Q2 2022 related to Norway tax reform.
^5^Includes a tax adjustment in Q3 2022 and Q4 2022 related to pending claims and settlements.
^6^Includes tax adjustment related to Q1 2022 Indonesia disposition; Q1 2022 tax adjustments including the closure of an audit; Q4 2022 tax adjustment<br> related to pending claims and settlements.
2022 2023
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
CONSOLIDATED BALANCE SHEET
Assets
Cash and cash equivalents 6,414 6,909 8,010 6,458 6,458 6,974 5,735 5,735
Short-term investments 730 1,272 2,412 2,785 2,785 1,635 1,080 1,080
Accounts and notes receivable 7,807 8,081 7,338 7,075 7,075 5,280 4,517 4,517
Accounts and notes receivable—related parties 72 72 16 13 13 16 14 14
Inventories 1,174 1,234 1,226 1,219 1,219 1,258 1,236 1,236
Prepaid expenses and other current assets 1,389 1,292 1,451 1,199 1,199 953 919 919
Total Current Assets 17,586 18,860 20,453 18,749 18,749 16,116 13,501 13,501
Investments and long-term receivables 8,309 8,203 8,204 8,225 8,225 8,197 8,618 8,618
Net properties, plants and equipment 64,642 64,008 63,673 64,866 64,866 65,090 65,452 65,452
Other assets 2,771 2,622 2,507 1,989 1,989 2,038 2,034 2,034
Total Assets 93,308 93,693 94,837 93,829 93,829 91,441 89,605 89,605
Liabilities
Accounts payable 4,875 5,845 6,242 6,113 6,113 5,078 4,597 4,597
Accounts payable—related parties 22 28 26 50 50 22 29 29
Short-term debt 1,160 676 664 417 417 1,317 879 879
Accrued income and other taxes 3,162 2,759 3,187 3,193 3,193 2,847 1,692 1,692
Employee benefit obligations 446 529 628 728 728 420 552 552
Other accruals 1,959 2,379 3,250 2,346 2,346 1,869 1,799 1,799
Total Current Liabilities 11,624 12,216 13,997 12,847 12,847 11,553 9,548 9,548
Long-term debt 17,586 16,295 16,297 16,226 16,226 15,266 15,565 15,565
Asset retirement obligations and accrued environmental costs 5,815 5,737 5,729 6,401 6,401 6,324 6,357 6,357
Deferred income taxes 6,556 6,694 7,218 7,726 7,726 7,927 8,038 8,038
Employee benefit obligations 1,085 1,080 1,087 1,074 1,074 1,007 981 981
Other liabilities and deferred credits 1,424 1,469 1,430 1,552 1,552 1,581 1,585 1,585
Total Liabilities 44,090 43,491 45,758 45,826 45,826 43,658 42,074 42,074
Equity
Common stock issued
Par value 21 21 21 21 21 21 21 21
Capital in excess of par 60,907 61,045 61,089 61,142 61,142 61,100 61,169 61,169
Treasury stock (52,344 ) (54,644 ) (57,444 ) (60,189 ) (60,189 ) (61,904 ) (63,217 ) (63,217 )
Accumulated other comprehensive loss (4,808 ) (5,313 ) (5,865 ) (6,000 ) (6,000 ) (6,027 ) (5,925 ) (5,925 )
Retained earnings 45,442 49,093 51,278 53,029 53,029 54,593 55,483 55,483
Total Equity 49,218 50,202 49,079 48,003 48,003 47,783 47,531 47,531
Total Liabilities and Equity 93,308 93,693 94,837 93,829 93,829 91,441 89,605 89,605

All values are in US Dollars.

2022 2023
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
CASH FLOW INFORMATION
Cash Flows from Operating Activities
Net income 5,759 5,145 4,527 3,249 18,680 2,920 2,232 5,152
Depreciation, depletion and amortization 1,823 1,810 1,872 1,999 7,504 1,942 2,010 3,952
Impairments 2 2 2 (18 ) (12 ) 1 - 1
Dry hole costs and leasehold impairments 7 97 32 204 340 68 34 102
Accretion on discounted liabilities 61 61 60 68 250 68 68 136
Deferred taxes 373 495 726 492 2,086 324 165 489
Undistributed equity earnings 220 371 (22 ) 373 942 491 161 652
Gain (loss) on dispositions (817 ) (262 ) 40 (38 ) (1,077 ) (93 ) 1 (92 )
Gain on investment in Cenovus Energy (251 ) - - - (251 ) - - -
Other (152 ) 115 (1 ) 124 86 (35 ) 28 (7 )
Net working capital changes (1,957 ) 80 1,504 139 (234 ) (283 ) (845 ) (1,128 )
Net Cash Provided by Operating Activities 5,068 7,914 8,740 6,592 28,314 5,403 3,854 9,257
Cash Flows from Investing Activities
Capital expenditures and investments (3,161 ) (1,968 ) (2,497 ) (2,533 ) (10,159 ) (2,897 ) (2,923 ) (5,820 )
Working capital changes associated with investing activities 363 133 46 (22 ) 520 208 (122 ) 86
Acquisition of businesses, net of cash acquired 37 - - (97 ) (60 ) - - -
Proceeds from asset dispositions 2,332 619 403 117 3,471 188 238 426
Net (purchases) sales of investments (263 ) (841 ) (1,131 ) (394 ) (2,629 ) 1,065 484 1,549
Collection of advances/loans—related parties 55 - 59 - 114 - - -
Other 26 (34 ) 15 (5 ) 2 (12 ) 7 (5 )
Net Cash Used in Investing Activities (611 ) (2,091 ) (3,105 ) (2,934 ) (8,741 ) (1,448 ) (2,316 ) (3,764 )
Cash Flows from Financing Activities
Net repayment of debt (1,067 ) (1,865 ) (45 ) (393 ) (3,370 ) (43 ) (64 ) (107 )
Issuance of company common stock 271 79 (5 ) 17 362 (97 ) 2 (95 )
Repurchase of company common stock (1,425 ) (2,300 ) (2,799 ) (2,746 ) (9,270 ) (1,700 ) (1,300 ) (3,000 )
Dividends paid (864 ) (988 ) (1,484 ) (2,390 ) (5,726 ) (1,488 ) (1,350 ) (2,838 )
Other (52 ) (4 ) 3 4 (49 ) 2 (13 ) (11 )
Net Cash Used in Financing Activities (3,137 ) (5,078 ) (4,330 ) (5,508 ) (18,053 ) (3,326 ) (2,725 ) (6,051 )
Effect of Exchange Rate Changes 21 (258 ) (215 ) 228 (224 ) (104 ) (58 ) (162 )
Net Change in Cash, Cash Equivalents and Restricted Cash 1,341 487 1,090 (1,622 ) 1,296 525 (1,245 ) (720 )
Cash, cash equivalents and restricted cash at beginning of period 5,398 6,739 7,226 8,316 5,398 6,694 7,219 6,694
Cash, Cash Equivalents and Restricted Cash at End of Period 6,739 7,226 8,316 6,694 6,694 7,219 5,974 5,974
CAPITAL EXPENDITURES AND INVESTMENTS
Alaska 253 218 269 351 1,091 406 363 769
Lower 48 1,062 1,285 1,773 1,510 5,630 1,704 1,653 3,357
Canada 122 125 135 148 530 136 92 228
Europe, Middle East and North Africa 172 192 167 467 998 209 358 567
Asia Pacific 1,538 126 127 89 1,880 63 79 142
Other International - - - - - - - -
Corporate and Other 14 22 26 (32 ) 30 379 378 757
Total Capital Expenditures and Investments 3,161 1,968 2,497 2,533 10,159 2,897 2,923 5,820

All values are in US Dollars.

2022 2023
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
TOTAL SEGMENTS
Production
Total (MBOED) 1,747 1,692 1,754 1,758 1,738 1,792 1,805 1,798
Crude Oil (MBD)
Consolidated operations 903 857 882 899 885 926 918 922
Equity affiliates 12 14 13 13 13 11 13 12
Total 915 871 895 912 898 937 931 934
Over (under) lifting of crude oil (MBD) 28 27 4 9 17 (4 ) 33 15
NGL (MBD)
Consolidated operations 216 236 263 261 244 264 275 270
Equity affiliates 7 8 8 8 8 7 8 7
Total 223 244 271 269 252 271 283 277
Bitumen (MBD)
Consolidated operations 67 59 69 69 66 69 66 67
Total 67 59 69 69 66 69 66 67
Natural Gas (MMCFD)
Consolidated operations 2,126 1,872 1,899 1,862 1,939 1,922 1,896 1,909
Equity affiliates 1,127 1,235 1,214 1,184 1,191 1,166 1,251 1,209
Total 3,253 3,107 3,113 3,046 3,130 3,088 3,147 3,118
Industry Prices
Crude Oil (/BBL)
WTI 94.29 108.41 91.56 82.64 94.23 76.13 73.78 74.96
WCS 79.76 95.71 71.88 56.72 76.02 51.31 58.62 54.97
Brent dated 101.40 113.78 100.85 88.71 101.19 81.27 78.39 79.83
JCC (/BBL) 80.43 86.09 110.97 113.23 97.68 100.49 87.19 93.84
Natural Gas (/MMBTU)
Henry Hub first of month 4.96 7.17 8.20 6.26 6.65 3.44 2.09 2.77
Average Realized Prices
Total (/BBL) 76.99 88.57 83.07 71.05 79.82 60.86 54.50 57.63
Crude Oil (/BBL)
Consolidated operations 94.79 111.49 97.60 85.61 97.23 77.60 74.18 75.85
Equity affiliates 97.20 111.97 94.58 83.64 97.31 80.97 75.10 77.90
Total 94.82 111.50 97.56 85.58 97.23 77.65 74.19 75.88
NGL (/BBL)
Consolidated operations 40.95 42.20 34.83 26.46 35.67 24.97 20.05 22.41
Equity affiliates 67.04 72.44 55.51 50.61 61.22 57.71 43.62 50.13
Total 41.80 43.26 35.47 27.21 36.50 25.84 20.72 23.18
Bitumen (/BBL)
Consolidated operations 65.86 75.42 49.77 34.47 55.56 29.49 41.01 34.93
Total 65.86 75.42 49.77 34.47 55.56 29.49 41.01 34.93
Natural Gas (/MCF)
Consolidated operations 8.81 10.19 14.14 9.26 10.56 5.65 2.89 4.27
Equity affiliates 8.86 10.08 11.37 12.19 10.67 9.95 8.23 9.06
Total 8.83 10.15 13.04 10.44 10.60 7.30 5.04 6.16
Exploration Expenses ( Millions)
Dry holes 1 87 25 138 251 49 23 72
Leasehold impairment 6 10 7 66 89 19 11 30
Total noncash expenses 7 97 32 204 340 68 34 102
Other (G&A, G&G and lease rentals) 62 46 57 59 224 70 49 119
Total exploration expenses 69 143 89 263 564 138 83 221
U.S. exploration expenses 54 40 42 86 222 108 51 159
International exploration expenses 15 103 47 177 342 30 32 62
DD&A ( Millions)
Alaska 226 234 232 247 939 260 267 527
Lower 48 1,168 1,192 1,198 1,307 4,865 1,319 1,407 2,726
Canada 102 98 96 106 402 91 84 175
Europe, Middle East and North Africa 192 157 196 191 736 153 139 292
Asia Pacific 124 118 140 136 518 113 108 221
Other International - - - - - - - -
Corporate and Other 11 11 10 12 44 6 5 11
Total DD&A 1,823 1,810 1,872 1,999 7,504 1,942 2,010 3,952

All values are in US Dollars.

2022 2023
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
PRODUCTION
Crude Oil (MBD)
Consolidated operations
Alaska 182 177 171 179 177 179 176 177
Lower 48 538 528 537 534 534 561 565 563
Canada 6 5 4 8 6 6 6 6
Norway 76 56 77 74 71 70 65 68
Libya 37 34 30 44 36 47 48 48
Europe, Middle East and North Africa 113 90 107 118 107 117 113 116
China 30 29 31 31 30 34 32 33
Indonesia 1 -
Malaysia 33 28 32 29 31 29 26 27
Asia Pacific 64 57 63 60 61 63 58 60
Total consolidated operations 903 857 882 899 885 926 918 922
Equity affiliates 12 14 13 13 13 11 13 12
Total 915 871 895 912 898 937 931 934
NGL (MBD)
Consolidated operations
Alaska 18 16 15 17 17 18 16 18
Lower 48 191 214 241 236 221 239 252 245
Canada 3 3 3 4 3 3 3 3
Norway 4 3 4 4 3 4 4 4
Europe, Middle East and North Africa 4 3 4 4 3 4 4 4
Total consolidated operations 216 236 263 261 244 264 275 270
Equity affiliates 7 8 8 8 8 7 8 7
Total 223 244 271 269 252 271 283 277
Bitumen (MBD)
Canada 67 59 69 69 66 69 66 67
Total 67 59 69 69 66 69 66 67
Natural Gas (MMCFD)
Consolidated operations
Alaska 35 34 29 39 34 42 34 38
Lower 48 1,426 1,411 1,410 1,362 1,402 1,418 1,478 1,448
Canada 63 66 49 64 61 64 58 61
Norway 308 284 312 317 306 313 256 284
Libya 23 22 19 26 22 29 30 29
Europe, Middle East and North Africa 331 306 331 343 328 342 286 313
Indonesia 194 48
Malaysia 77 55 80 54 66 56 40 49
Asia Pacific 271 55 80 54 114 56 40 49
Total consolidated operations 2,126 1,872 1,899 1,862 1,939 1,922 1,896 1,909
Equity affiliates 1,127 1,235 1,214 1,184 1,191 1,166 1,251 1,209
Total 3,253 3,107 3,113 3,046 3,130 3,088 3,147 3,118
Total (MBOED)
Consolidated operations
Alaska 206 199 191 203 200 204 198 201
Lower 48 967 977 1,013 997 989 1,036 1,063 1,049
Canada 86 78 84 92 85 89 85 87
Norway 131 106 133 131 125 126 112 119
Libya 41 38 33 48 40 52 53 53
Europe, Middle East and North Africa 172 144 166 179 165 178 165 172
China 30 29 31 31 30 34 32 33
Indonesia 33 8
Malaysia 46 37 45 38 42 38 33 35
Asia Pacific 109 66 76 69 80 72 65 68
Total consolidated operations 1,540 1,464 1,530 1,540 1,519 1,579 1,576 1,577
Equity affiliates 207 228 224 218 219 213 229 221
Total 1,747 1,692 1,754 1,758 1,738 1,792 1,805 1,798
2022 2023
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
AVERAGE REALIZED PRICES
Crude Oil (/BBL)
Consolidated operations
Alaska 95.54 114.77 103.90 91.34 101.72 82.22 76.09 79.08
Lower 48 93.55 109.14 93.19 82.28 94.46 74.36 72.06 73.19
Canada 82.13 94.79 71.11 73.62 79.94 65.07 59.40 62.56
Norway 92.18 116.93 104.10 89.96 99.88 85.34 80.39 82.87
Libya 99.92 113.03 98.55 87.39 97.85 80.41 78.65 79.41
Europe, Middle East and North Africa 94.68 115.61 102.70 88.86 99.20 83.52 79.64 81.48
China 105.75 115.00 101.95 88.21 101.87 76.93 75.27 76.02
Indonesia 77.09 77.09
Malaysia 104.88 119.26 115.94 98.90 109.42 89.99 83.92 87.34
Asia Pacific 104.84 117.14 108.99 93.29 105.52 83.50 78.64 81.07
Total consolidated operations 94.79 111.49 97.60 85.61 97.23 77.60 74.18 75.85
Equity affiliates 97.20 111.97 94.58 83.64 97.31 80.97 75.10 77.90
Total 94.82 111.50 97.56 85.58 97.23 77.65 74.19 75.88
NGL (/BBL)
Consolidated operations
Lower 48 40.42 42.00 34.59 26.21 35.36 24.58 19.61 22.01
Canada 41.83 44.93 29.62 34.08 37.70 29.02 17.11 22.94
Norway 58.67 68.00 51.67 40.72 54.52 47.91 37.06 40.63
Europe, Middle East and North Africa 58.67 68.00 51.67 40.72 54.52 47.91 37.06 40.63
Total consolidated operations 40.95 42.20 34.83 26.46 35.67 24.97 20.05 22.41
Equity affiliates 67.04 72.44 55.51 50.61 61.22 57.71 43.62 50.13
Total 41.80 43.26 35.47 27.21 36.50 25.84 20.72 23.18
Bitumen (/BBL)
Canada* 65.86 75.42 49.77 34.47 55.56 29.49 41.01 34.93
Total 65.86 75.42 49.77 34.47 55.56 29.49 41.01 34.93
Natural Gas (/MCF)
Consolidated operations
Alaska 3.92 3.34 4.38 3.24 3.64 4.58 4.38 4.49
Lower 48 4.63 6.85 7.36 4.82 5.92 2.92 1.43 2.16
Canada 3.25 4.47 2.40 4.04 3.62 4.64 0.56 2.70
Norway 30.93 30.06 50.57 29.74 35.33 18.04 11.32 15.04
Libya 5.13 5.61 7.46 8.00 6.59 7.67 6.67 7.16
Europe, Middle East and North Africa 29.18 28.32 48.10 28.13 33.39 17.18 10.83 14.31
Indonesia 8.26 8.26
Malaysia 3.85 4.17 4.18 4.24 4.09 4.30 4.10 4.22
Asia Pacific 7.01 4.17 4.18 4.24 5.84 4.30 4.10 4.22
Total consolidated operations 8.81 10.19 14.14 9.26 10.56 5.65 2.89 4.27
Equity affiliates 8.86 10.08 11.37 12.19 10.67 9.95 8.23 9.06
Total 8.83 10.15 13.04 10.44 10.60 7.30 5.04 6.16
*Average realized prices exclude additional value realized from third-party purchases and sales for optimization of our pipeline capacity between Canada and<br> the U.S. Gulf Coast.

All values are in US Dollars.

2022 2023
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
CORPORATE AND OTHER
Corporate and Other Earnings (Loss) ( Millions) 546 (349 ) (239 ) (288 ) (330 ) (242 ) (49 ) (291 )
Detail of Earnings (Loss) ( Millions)
Net interest expense (218 ) (164 ) (125 ) (93 ) (600 ) (90 ) (86 ) (176 )
Corporate G&A expenses (79 ) (16 ) (62 ) (87 ) (244 ) (90 ) (96 ) (186 )
Technology* 58 (9 ) (8 ) (9 ) 32 6 (11 ) (5 )
Other 785 (160 ) (44 ) (99 ) 482 (68 ) 144 76
Total 546 (349 ) (239 ) (288 ) (330 ) (242 ) (49 ) (291 )
*Includes investment in new technologies or businesses outside of our normal scope of operations and licensing revenues.
Before-Tax Net Interest Expense ( Millions)
Interest expense (227 ) (224 ) (215 ) (197 ) (863 ) (214 ) (218 ) (432 )
Capitalized interest 10 13 16 19 58 26 39 65
Interest revenue 6 29 60 90 185 95 97 192
Total (211 ) (182 ) (139 ) (88 ) (620 ) (93 ) (82 ) (175 )
Debt
Total debt ( Millions) 18,746 16,971 16,961 16,643 16,643 16,583 16,444 16,444
Debt-to-capital ratio (%) 28 % 25 % 26 % 26 % 26 % 26 % 26 % 26 %
Equity ( Millions) 49,218 50,202 49,079 48,003 48,003 47,783 47,531 47,531

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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