Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2020-07-30 For: 2020-07-30
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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):   July 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. ☐

Item 2.02 Results of Operations and Financial Condition.

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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.      Description

99.1 — Press release issued by ConocoPhillips on July 30, 2020.
99.2 — Supplemental financial information.
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104 — Cover Page Interactive Data File (formatted as Inline XBRL and filed herewith).
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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
July 30, 2020

Exhibit 99.1

ConocoPhillips Reports Second-Quarter 2020 Results

HOUSTON--(BUSINESS WIRE)--July 30, 2020--ConocoPhillips (NYSE: COP) today reported second-quarter 2020 earnings of $0.3 billion, or $0.24 per share, compared with second-quarter 2019 earnings of $1.6 billion, or $1.40 per share. Excluding special items, second-quarter 2020 adjusted earnings were a loss of $1.0 billion, or ($0.92) per share, compared with second-quarter 2019 adjusted earnings of $1.1 billion, or $1.01 per share. Special items for the current quarter were primarily due to a realized gain on the completion of the Australia-West divestiture and an unrealized gain on Cenovus Energy equity. Cash provided by operating activities was $0.2 billion. Excluding working capital, cash from operations (CFO) was $0.7 billion.

“Headline second-quarter performance was dominated by weak realized prices, coupled with our rational economic action to curtail production in favor of expected higher future prices,” said Ryan Lance, chairman and chief executive officer. “Importantly, our underlying business results were strong, reflecting our ongoing commitment to safely executing our plans and the dedication of our workforce during this challenging time. We are monitoring the market closely to develop a view around the timing and path of price recovery and to guide our corresponding actions. For example, as the market strengthened late in the second quarter, we began reversing our second-quarter curtailments and ramping up production across the Lower 48, Alaska and Canada. Our financial strength, flexibility and portfolio diversity represent a distinct competitive advantage that enables us to navigate and preserve value in this volatile environment.”

Second-Quarter Highlights and Recent Announcements

  • Ended the quarter with cash, cash equivalents and restricted cash totaling $3.2 billion and short-term investments of $4.0 billion, equaling $7.2 billion in ending cash and short-term investments.
  • Produced 981 MBOED excluding Libya during the second quarter; curtailed approximately 225 MBOED.
  • Completed the Australia-West divestiture, generating $0.8 billion in proceeds.
  • Distributed $0.5 billion in dividends.
  • Announced bolt-on acquisition of adjacent acreage in the liquids-rich Montney in Canada.

Second-Quarter Review

Production excluding Libya for the second quarter of 2020 was 981 thousand barrels of oil equivalent per day (MBOED) after curtailments of approximately 225 MBOED, resulting in a decrease of 309 MBOED from the same period a year ago. Adjusting for closed dispositions, second-quarter 2020 production was 957 MBOED, a decrease of 212 MBOED from the same period a year ago. This decrease was primarily due to curtailments and normal field decline, partially offset by growth from the Big 3, in addition to development programs in Canada and Europe. Excluding disposition and estimated curtailment impacts, second-quarter 2020 production was slightly higher than the same period a year ago. There was no production from Libya as it remained in force majeure during the quarter.

In the Lower 48, production from the Big 3 averaged 260 MBOED, including Eagle Ford of 162 MBOED, Permian Unconventional of 52 MBOED and Bakken of 46 MBOED. Lower 48 production included curtailments of approximately 145 MBOED, primarily in Eagle Ford and Bakken. At the Surmont operation in Canada, the company curtailed approximately 30 MBOED. At Montney, ramp up from the initial 14-well pad continued, increasing average production to 14 MBOED with 50 percent of the production from oil and natural gas liquids. In addition, completion operations on the second development pad progressed as planned, with start up on track for the third quarter of 2020. In Alaska, the company curtailed approximately 40 MBOED and completed appraisal testing at Narwhal with encouraging initial results. In China, first oil was achieved from Bohai Phase 3’s third and final platform.

Earnings decreased from second-quarter 2019 due to lower realized prices and lower volumes, partially offset by a change in Cenovus Energy equity market value and a gain from the Australia-West divestiture. Excluding special items, adjusted earnings were lower compared with second-quarter 2019 due to lower realized prices and volumes, partially offset by lower depreciation expense and production and operating expenses associated with the lower volumes. The company’s total average realized price was $23.09 per barrel of oil equivalent (BOE), 54 percent lower than the $50.50 per BOE realized in the second quarter of 2019, reflecting lower marker prices and regional differentials.

For the quarter, cash provided by operating activities was $0.2 billion. Excluding a $0.5 billion change in operating working capital, ConocoPhillips generated CFO of $0.7 billion. CFO included a benefit of $0.2 billion from the sale of product inventory that was written down in the first quarter of 2020, which was offset in operating working capital. The company also generated $0.8 billion in disposition proceeds from the sale of Australia-West. In addition, the company funded $0.9 billion of capital expenditures and investments and distributed $0.5 billion in dividends. The company also made a finance lease payment of $0.2 billion upon acceptance of the extended-reach drilling rig in Alaska.

Six-Month Review

ConocoPhillips’ six-month 2020 earnings were a loss of $1.5 billion, or ($1.37) per share, compared with six-month 2019 earnings of $3.4 billion, or $3.00 per share. Six-month 2020 adjusted earnings were a loss of $0.5 billion, or ($0.47) per share, compared with six-month 2019 adjusted earnings of $2.3 billion, or $2.01 per share.

Production excluding Libya for the first six months of 2020 was 1,130 MBOED, a decrease of 173 MBOED from the same period a year ago. Adjusting for closed dispositions, production for the first six months of 2020 was 1,089 MBOED, a decrease of 79 MBOED from the same period a year ago. This decrease was primarily due to normal field decline and production curtailments, partially offset by growth from the Big 3, as well as other development programs in Europe, Canada and Lower 48. Production from Libya averaged 5 MBOED for the first six months of 2020.

The company’s total realized price during this period was $32.15 per BOE, compared with $50.55 per BOE in the first six months of 2019. This 36 percent reduction reflected lower marker prices and regional differentials.

In the first half of 2020, cash provided by operating activities and CFO were both $2.3 billion. The company also generated $1.3 billion in disposition proceeds. In addition, the company funded $2.5 billion of capital expenditures and investments, paid $0.9 billion in dividends and repurchased $0.7 billion of shares. Capital expenditures and investments included approximately $0.1 billion for payments toward the 2019 Argentina acreage acquisition and Lower 48 bolt-on acquisitions.

Other Items

The company continues to monitor netback pricing and evaluate curtailments across our assets on a month-by-month basis. Based on the company’s economic criteria, we restored curtailed production in Alaska during the month of July. We also began bringing some curtailed volumes in the Lower 48 back on line in July and expect to be fully restored in September. At Surmont, the company began restoring production in July though the ramp up will be slower due to planned turnarounds in the third quarter and limited staffing in the field as a COVID-19 mitigation measure.

Upcoming operational activities for the company include several seasonal turnarounds and maintenance projects typically conducted in the second half of the year. These activities are planned in various areas across the company.

Given ongoing variability and uncertainty in the outlook for production curtailments, the company will continue to suspend forward-looking guidance and sensitivities.

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.

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About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 16 countries, $63 billion of total assets, and approximately 9,700 employees at June 30, 2020. Production excluding Libya averaged 1,130 MBOED for the six months ended June 30, 2020, and proved reserves were 5.3 BBOE as of Dec. 31, 2019. For more information, go to www.conocophillips.com.

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

This 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 underlying production. Underlying production excludes Libya and reflects the impact of closed dispositions with an assumed close date of January 1, 2019. The company believes that underlying production is useful to investors to compare production excluding Libya and reflecting the impact of closed 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
2Q19 2020 YTD 2019 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 $ 260 0.24 1,580 1.40 (1,479 ) (1.37 ) 3,413 3.00
Adjustments:
Net gain on asset sales ) (5 ) (594 ) (0.56 ) (61 ) (32 ) (93 ) (0.08 ) (551 ) (14 ) (565 ) (0.52 ) (61 ) (32 ) (93 ) (0.08 )
Unrealized (gain) loss on CVE shares ) - (551 ) (0.51 ) (30 ) - (30 ) (0.03 ) 1,140 - 1,140 1.05 (373 ) - (373 ) (0.33 )
Impairments ) 55 (159 ) (0.15 ) 95 (22 ) 73 0.06 556 (122 ) 434 0.40 155 (35 ) 120 0.10
Alberta tax credit (48 ) (48 ) (0.04 ) - - - - - (48 ) (48 ) (0.04 ) - - - -
Pending claims and settlements ) - (3 ) - (135 ) 15 (120 ) (0.11 ) (32 ) - (32 ) (0.03 ) (265 ) (53 ) (318 ) (0.28 )
Deferred tax adjustments 92 92 0.09 - (27 ) (27 ) (0.02 ) - 92 92 0.09 - (27 ) (27 ) (0.02 )
Unrealized (gain) loss on FX derivative (3 ) 9 0.01 24 (5 ) 19 0.02 (63 ) 13 (50 ) (0.05 ) 30 (6 ) 24 0.02
Alberta tax rate change - - - - (25 ) (25 ) (0.02 ) - - - - - (25 ) (25 ) (0.02 )
Capital loss tax benefit - - - - (234 ) (234 ) (0.21 ) - - - - - (234 ) (234 ) (0.21 )
Recognition of deferred revenue - - - - - - - - - - - (248 ) 52 (196 ) (0.17 )
Adjusted earnings / (loss) $ (994 ) (0.92 ) 1,143 1.01 (508 ) (0.47 ) 2,291 2.01
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 underlying production
In MBOED, Except as Indicated
2Q20 2Q19 2020 YTD 2019 YTD
Total Reported Production 981 1,332 1,135 1,346
Adjustments:
Libya - (42 ) (5 ) (43 )
Total Production excluding Libya 981 1,290 1,130 1,303
Closed Dispositions^1^ (24 ) (121 ) (41 ) (135 )
Total Underlying Production 957 1,169 1,089 1,168
^1^Includes production from the completed U.K., various Lower 48 dispositions and Australia-West disposition.
ConocoPhillips
Table 3: Reconciliation of net cash provided by operating activities to cash from operations
Millions, Except as Indicated
2020 YTD
Net Cash Provided by Operating Activities 2,262
Adjustments:
Net operating working capital changes ) (22 )
Cash from operations 2,284

All values are in US Dollars.

Contacts

John C. Roper (media)

      281-293-1451 

      *john.c.roper@conocophillips.com*

Investor Relations

      281-293-5000 

      *investor.relations@conocophillips.com*

Exhibit 99.2
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions, Except as Indicated
CONSOLIDATED INCOME STATEMENT
Revenues and Other Income
Sales and other operating revenues 9,150 7,953 7,756 7,708 32,567 6,158 2,749 8,907
Equity in earnings of affiliates 188 173 290 128 779 234 77 311
Gain (loss) on dispositions 17 82 1,785 82 1,966 (42 ) 596 554
Other income (loss) 702 172 262 222 1,358 (1,539 ) 594 (945 )
Total Revenues and Other Income 10,057 8,380 10,093 8,140 36,670 4,811 4,016 8,827
Costs and Expenses
Purchased commodities 3,675 2,674 2,710 2,783 11,842 2,661 1,130 3,791
Production and operating expenses 1,271 1,418 1,331 1,302 5,322 1,173 1,047 2,220
Selling, general and administrative expenses 153 129 87 187 556 (3 ) 156 153
Exploration expenses 110 122 360 151 743 188 97 285
Depreciation, depletion and amortization 1,546 1,490 1,566 1,488 6,090 1,411 1,158 2,569
Impairments 1 1 24 379 405 521 (2 ) 519
Taxes other than income taxes 275 194 237 247 953 250 141 391
Accretion on discounted liabilities 86 87 86 67 326 67 66 133
Interest and debt expense 233 165 184 196 778 202 202 404
Foreign currency transactions (gain) loss 12 28 (21 ) 47 66 (90 ) 7 (83 )
Other expenses 8 14 36 7 65 (6 ) (7 ) (13 )
Total Costs and Expenses 7,370 6,322 6,600 6,854 27,146 6,374 3,995 10,369
Income (loss) before income taxes 2,687 2,058 3,493 1,286 9,524 (1,563 ) 21 (1,542 )
Income tax provision (benefit) 841 461 422 543 2,267 148 (257 ) (109 )
Net Income (Loss) 1,846 1,597 3,071 743 7,257 (1,711 ) 278 (1,433 )
Less: net income attributable to noncontrolling interests (13 ) (17 ) (15 ) (23 ) (68 ) (28 ) (18 ) (46 )
Net Income (Loss) Attributable to ConocoPhillips 1,833 1,580 3,056 720 7,189 (1,739 ) 260 (1,479 )
Net Income (Loss) Attributable to ConocoPhillips
Per Share of Common Stock (dollars)
Basic 1.61 1.40 2.76 0.66 6.43 (1.60 ) 0.24 (1.37 )
Diluted 1.60 1.40 2.74 0.65 6.40 (1.60 ) 0.24 (1.37 )
Average Common Shares Outstanding<br> (in thousands)*
Basic 1,139,463 1,125,995 1,108,555 1,095,606 1,117,260 1,084,561 1,076,659 1,080,610
Diluted 1,146,515 1,131,242 1,113,250 1,099,786 1,123,536 1,084,561 1,077,606 1,080,610
*Ending Common Shares Outstanding is 1,072,566 as of Jun. 30, 2020, compared with 1,072,425 as of Mar. 31, 2020.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 505 580 417 491 1,993 107 (195 ) (88 )
Lower 48 261 269 35 9 574 (562 ) (471 ) (1,033 )
Canada 73 100 69 (6 ) 236 (150 ) (177 ) (327 )
Europe and North Africa 709 602 2,345 502 4,158 187 (72 ) 115
Asia Pacific and Middle East 730 642 606 509 2,487 569 714 1,283
Other International 130 87 75 (21 ) 271 27 (5 ) 22
Corporate and Other 279 (222 ) (54 ) (198 ) (195 ) (1,741 ) 227 (1,514 )
Consolidated 2,687 2,058 3,493 1,286 9,524 (1,563 ) 21 (1,542 )
EFFECTIVE INCOME TAX RATES
Alaska* 23.9 % 20.5 % 26.6 % 24.7 % 23.7 % 24.3 % 27.6 % 31.6 %
Lower 48 26.2 % 23.1 % 27.7 % -32.5 % 24.0 % 22.3 % 22.5 % 22.4 %
Canada -66.4 % -1.0 % 26.1 % 196.6 % -18.3 % 26.8 % 51.8 % 40.4 %
Europe and North Africa 70.8 % 32.4 % 14.6 % 78.4 % 34.5 % 59.8 % 115.1 % 25.0 %
Asia Pacific and Middle East 26.2 % 17.1 % -3.8 % 41.8 % 19.7 % 25.2 % 4.8 % 13.9 %
Other International -1.3 % 6.6 % 4.4 % -0.8 % 2.8 % -2.0 % -2.6 % -1.8 %
Corporate and Other 3.0 % 13.3 % 74.3 % 86.6 % 119.4 % -1.9 % 18.7 % -5.0 %
Consolidated 31.3 % 22.4 % 12.1 % 42.2 % 23.8 % -9.5 % -1330.4 % 7.1 %
*Alaska including taxes other than income taxes. 38.1 % 25.8 % 40.6 % 38.2 % 35.4 % 61.2 % -18.9 % 166.5 %

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
EARNINGS BY SEGMENT
Alaska 384 462 306 368 1,520 81 (141 ) (60 )
Lower 48 193 206 26 11 436 (437 ) (365 ) (802 )
Canada 122 100 51 6 279 (109 ) (86 ) (195 )
Europe and North Africa 207 407 2,001 109 2,724 75 11 86
Asia Pacific and Middle East 525 517 613 274 1,929 398 662 1,060
Other International 131 81 73 (22 ) 263 28 (6 ) 22
Corporate and Other 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (1,590 )
Consolidated 1,833 1,580 3,056 720 7,189 (1,739 ) 260 (1,479 )
SPECIAL ITEMS
Alaska - 81 (6 ) 4 79 (120 ) 81 (39 )
Lower 48 (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) 40 (427 )
Canada 68 66 - - 134 (29 ) 77 48
Europe and North Africa - 234 1,845 (7 ) 2,072 (2 ) 2 -
Asia Pacific and Middle East - 52 164 (151 ) 65 (4 ) 601 597
Other International 147 84 86 - 317 29 - 29
Corporate and Other 517 45 163 273 998 (1,632 ) 453 (1,179 )
Consolidated 685 437 2,142 (111 ) 3,153 (2,225 ) 1,254 (971 )
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 384 381 312 364 1,441 201 (222 ) (21 )
Lower 48 240 331 136 241 948 30 (405 ) (375 )
Canada 54 34 51 6 145 (80 ) (163 ) (243 )
Europe and North Africa 207 173 156 116 652 77 9 86
Asia Pacific and Middle East 525 465 449 425 1,864 402 61 463
Other International (16 ) (3 ) (13 ) (22 ) (54 ) (1 ) (6 ) (7 )
Corporate and Other (246 ) (238 ) (177 ) (299 ) (960 ) (143 ) (268 ) (411 )
Consolidated 1,148 1,143 914 831 4,036 486 (994 ) (508 )
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 23.9 % 25.6 % 25.2 % 25.4 % 25.0 % 23.0 % 26.6 % 48.4 %
Lower 48 25.3 % 23.0 % 23.1 % 20.5 % 23.0 % 18.0 % 22.5 % 22.8 %
Canada 26.7 % 20.8 % 26.1 % 196.6 % 19.5 % 27.2 % 25.0 % 25.7 %
Europe and North Africa 70.8 % 71.3 % 73.4 % 77.7 % 73.0 % 61.0 % 110.7 % 25.0 %
Asia Pacific and Middle East 26.2 % 24.6 % 23.3 % 28.9 % 25.8 % 25.1 % 35.6 % 27.0 %
Other International 9.6 % -32.9 % -2.7 % -0.8 % 0.7 % 28.6 % -2.6 % 5.3 %
Corporate and Other 14.8 % 12.7 % 23.3 % 4.8 % 13.2 % -13.9 % 15.0 % 6.9 %
Consolidated 42.9 % 40.5 % 42.5 % 46.6 % 43.0 % 38.2 % 26.3 % 6.1 %

All values are in US Dollars.

2019 2020
$ Millions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
DETAILED SPECIAL ITEMS
Alaska
Impairments - - - - - (154 ) 109 (45 )
Pending claims and settlements - 69 - - 69 - - -
Subtotal before income taxes - 69 - - 69 (154 ) 109 (45 )
Income tax provision (benefit)^1^ - (12 ) 6 (4 ) (10 ) (34 ) 28 (6 )
Total - 81 (6 ) 4 79 (120 ) 81 (39 )
Lower 48
Impairments (60 ) (95 ) (141 ) (386 ) (682 ) (561 ) 50 (511 )
Gain (loss) on asset sales - - - 82 82 (38 ) 2 (36 )
Pending claims and settlements - (67 ) - 9 (58 ) - - -
Subtotal before income taxes (60 ) (162 ) (141 ) (295 ) (658 ) (599 ) 52 (547 )
Income tax provision (benefit) (13 ) (37 ) (31 ) (65 ) (146 ) (132 ) 12 (120 )
Total (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) 40 (427 )
Canada
Impairments - - - - - (39 ) 39 -
Gain (loss) on asset sales - 56 - - 56 - - -
Subtotal before income taxes - 56 - - 56 (39 ) 39 -
Income tax provision (benefit)^2^ (68 ) (10 ) - - (78 ) (10 ) (38 ) (48 )
Total 68 66 - - 134 (29 ) 77 48
Europe 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 - 587 587
Impairments - - - - - (5 ) 5 -
Qatar deferred tax adjustment - - - (118 ) (118 ) - - -
Pending claims and settlements - - - (2 ) (2 ) - - -
Subtotal before income taxes - 5 - (120 ) (115 ) (5 ) 592 587
Income tax provision (benefit)^4^ - (47 ) (164 ) 31 (180 ) (1 ) (9 ) (10 )
Total - 52 164 (151 ) 65 (4 ) 601 597
Other International
Pending claims and settlements 147 89 89 - 325 29 - 29
Subtotal before income taxes 147 89 89 - 325 29 - 29
Income tax provision (benefit) - 5 3 - 8 - - -
Total 147 84 86 - 317 29 - 29
Corporate and Other
Pension settlement expense - - (37 ) (8 ) (45 ) - - -
Pending claims and settlements (17 ) 44 34 (17 ) 44 - 3 3
Unrealized gain (loss) on CVE common shares 343 30 116 160 649 (1,691 ) 551 (1,140 )
Unrealized gain (loss) on CAD FX derivative (6 ) (24 ) 15 (18 ) (33 ) 75 (12 ) 63
Recognition of deferred revenue 248 - 49 - 297 - - -
Subtotal before income taxes 568 50 177 117 912 (1,616 ) 542 (1,074 )
Income tax provision (benefit)^5^ 51 5 14 (156 ) (86 ) 16 89 105
Total 517 45 163 273 998 (1,632 ) 453 (1,179 )
Total Company 685 437 2,142 (111 ) 3,153 (2,225 ) 1,254 (971 )
^1^Includes deferred tax adjustment in 2Q 2019 and 2Q 2020 in Alaska.
^2^Includes deferred tax adjustment in 1Q 2019, tax rate change in 2Q 2019, and recognition of a tax<br> refund in 2Q 2020 in Canada.
^3^Includes tax adjustment in 2Q 2019 and 3Q 2019 related to the U.K. disposition.
^4^Includes tax adjustment in 2Q 2019 related to the Greater Sunrise Fields disposition, 3Q 2019 for<br> Malaysia Deepwater tax incentives, and 2Q 2020 for the Australia-West disposition.
^5^Includes deferred tax adjustment related to foreign tax credits in 4Q 2019 and 2Q 2020.
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
CONSOLIDATED BALANCE SHEET
Assets
Cash and cash equivalents 6,218 5,941 7,193 5,088 5,088 3,908 2,907 2,907
Short-term investments 249 732 908 3,028 3,028 3,866 3,985 3,985
Accounts and notes receivable 3,701 3,490 3,478 3,267 3,267 2,116 1,399 1,399
Accounts and notes receivable—related parties 168 161 138 134 134 148 133 133
Investment in Cenovus Energy 1,805 1,835 1,951 2,111 2,111 420 971 971
Inventories 1,014 1,089 955 1,026 1,026 726 982 982
Prepaid expenses and other current assets 528 2,552 594 2,259 2,259 1,960 676 676
Total Current Assets 13,683 15,800 15,217 16,913 16,913 13,144 11,053 11,053
Investments and long-term receivables 9,302 8,748 8,916 8,687 8,687 8,707 8,334 8,334
Loans and advances—related parties 268 268 219 219 219 167 167 167
Net properties, plants and equipment 45,942 44,334 43,814 42,269 42,269 40,645 41,120 41,120
Other assets 2,303 2,111 2,174 2,426 2,426 2,370 2,372 2,372
Total Assets 71,498 71,261 70,340 70,514 70,514 65,033 63,046 63,046
Liabilities
Accounts payable 3,815 3,618 3,148 3,176 3,176 2,900 2,060 2,060
Accounts payable—related parties 31 17 23 24 24 21 20 20
Short-term debt 113 114 121 105 105 126 146 146
Accrued income and other taxes 1,539 1,213 1,077 1,030 1,030 853 312 312
Employee benefit obligations 470 529 543 663 663 323 422 422
Other accruals 1,402 3,505 1,030 2,045 2,045 1,852 1,145 1,145
Total Current Liabilities 7,370 8,996 5,942 7,043 7,043 6,075 4,105 4,105
Long-term debt 14,832 14,809 14,799 14,790 14,790 14,847 14,852 14,852
Asset retirement obligations and accrued environmental costs 7,730 5,996 6,087 5,352 5,352 5,316 5,465 5,465
Deferred income taxes 5,043 4,825 4,693 4,634 4,634 4,141 3,901 3,901
Employee benefit obligations 1,704 1,689 1,786 1,781 1,781 1,563 1,586 1,586
Other liabilities and deferred credits 1,838 1,872 1,794 1,864 1,864 1,704 1,644 1,644
Total Liabilities 38,517 38,187 35,101 35,464 35,464 33,646 31,553 31,553
Equity
Common stock issued
Par value 18 18 18 18 18 18 18 18
Capital in excess of par 46,877 46,922 46,954 46,983 46,983 47,027 47,079 47,079
Treasury stock (43,656 ) (44,906 ) (45,656 ) (46,405 ) (46,405 ) (47,130 ) (47,130 ) (47,130 )
Accumulated other comprehensive income (loss) (5,914 ) (5,827 ) (5,654 ) (5,357 ) (5,357 ) (6,145 ) (5,825 ) (5,825 )
Retained earnings 35,534 36,769 39,484 39,742 39,742 37,545 37,351 37,351
Total Common Stockholders' Equity 32,859 32,976 35,146 34,981 34,981 31,315 31,493 31,493
Noncontrolling Interests 122 98 93 69 69 72 - -
Total Equity 32,981 33,074 35,239 35,050 35,050 31,387 31,493 31,493
Total Liabilities and Equity 71,498 71,261 70,340 70,514 70,514 65,033 63,046 63,046

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
CASH FLOW INFORMATION
Cash Flows from Operating Activities
Net income (loss) 1,846 1,597 3,071 743 7,257 (1,711 ) 278 (1,433 )
Depreciation, depletion and amortization 1,546 1,490 1,566 1,488 6,090 1,411 1,158 2,569
Impairments 1 1 24 379 405 521 (2 ) 519
Dry hole costs and leasehold impairments 27 41 293 60 421 67 3 70
Accretion on discounted liabilities 86 87 86 67 326 67 66 133
Deferred taxes (1 ) (220 ) (83 ) (140 ) (444 ) (227 ) (93 ) (320 )
Undistributed equity earnings 24 338 (102 ) 334 594 31 373 404
Gain on dispositions (17 ) (82 ) (1,785 ) (82 ) (1,966 ) 42 (596 ) (554 )
Unrealized (gain) loss on investment in Cenovus Energy (343 ) (30 ) (116 ) (160 ) (649 ) 1,691 (551 ) 1,140
Other (221 ) 200 (310 ) (20 ) (351 ) (284 ) 40 (244 )
Net working capital changes (54 ) (531 ) (307 ) 313 (579 ) 497 (519 ) (22 )
Net Cash Provided by Operating Activities 2,894 2,891 2,337 2,982 11,104 2,105 157 2,262
Cash Flows from Investing Activities
Capital expenditures and investments (1,637 ) (1,729 ) (1,675 ) (1,595 ) (6,636 ) (1,649 ) (876 ) (2,525 )
Working capital changes associated with investing activities 107 (83 ) (7 ) (120 ) (103 ) 81 (332 ) (251 )
Proceeds from asset dispositions 142 559 2,219 92 3,012 549 764 1,313
Net sales (purchases) of investments (1 ) (484 ) (180 ) (2,245 ) (2,910 ) (935 ) (95 ) (1,030 )
Long-term collections from (advances to)<br> related parties and other investments (88 ) 276 (207 ) 38 19 22 9 31
Net Cash Provided by (Used in) Investing Activities (1,477 ) (1,461 ) 150 (3,830 ) (6,618 ) (1,932 ) (530 ) (2,462 )
Cash Flows from Financing Activities
Repayment of debt (19 ) (19 ) (21 ) (21 ) (80 ) (24 ) (190 ) (214 )
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 ) (455 ) (913 )
Other (14 ) (41 ) (18 ) (46 ) (119 ) (24 ) (4 ) (28 )
Net Cash Provided by (Used in) Financing Activities (1,173 ) (1,654 ) (1,132 ) (1,270 ) (5,229 ) (1,230 ) (649 ) (1,879 )
Effect of Exchange Rate Changes 75 (49 ) (94 ) 22 (46 ) (122 ) 29 (93 )
Net Change in Cash, Cash Equivalents and Restricted Cash 319 (273 ) 1,261 (2,096 ) (789 ) (1,179 ) (993 ) (2,172 )
Cash, cash equivalents and restricted cash at beginning of period 6,151 6,470 6,197 7,458 6,151 5,362 4,183 5,362
Cash, Cash Equivalents and Restricted Cash at End of Period 6,470 6,197 7,458 5,362 5,362 4,183 3,190 3,190
CAPITAL EXPENDITURES AND INVESTMENTS
Alaska 410 370 427 306 1,513 509 223 732
Lower 48 834 936 843 781 3,394 776 354 1,130
Canada 123 109 83 53 368 74 68 142
Europe and North Africa 157 182 198 171 708 121 130 251
Asia Pacific and Middle East 96 123 103 262 584 103 85 188
Other International 1 - - 7 8 53 10 63
Corporate and Other 16 9 21 15 61 13 6 19
Total Capital Expenditures and Investments 1,637 1,729 1,675 1,595 6,636 1,649 876 2,525

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
TOTAL SEGMENTS
Production
Total (MBOED) 1,361 1,332 1,366 1,334 1,348 1,289 981 1,135
Crude Oil (MBD)
Consolidated operations 703 688 696 681 692 642 460 551
Equity affiliates 12 14 14 14 13 12 14 13
Total 715 702 710 695 705 654 474 564
Over (under) lifting of crude oil (MBD) 8 (3 ) 19 (2 ) 6 (20 ) (9 ) (15 )
NGL (MBD)
Consolidated operations 103 110 106 110 107 116 85 101
Equity affiliates 7 8 8 8 8 7 8 7
Total 110 118 114 118 115 123 93 108
Bitumen (MBD)
Consolidated operations 63 51 63 64 60 66 34 50
Equity affiliates - - - - - - - -
Total 63 51 63 64 60 66 34 50
Natural Gas (MMCFD)
Consolidated operations 1,852 1,704 1,795 1,661 1,753 1,638 1,221 1,429
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,056 1,046
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,277 2,475
Industry Prices
Crude Oil (/BBL)
WTI 54.87 59.80 56.44 56.98 57.02 46.06 27.85 36.96
WCS 42.58 49.13 44.18 41.15 44.26 25.54 16.58 21.06
Brent dated 63.20 68.82 61.94 63.22 64.30 50.31 29.20 39.75
JCC (/BBL) 76.98 63.72 71.59 66.34 69.66 65.89 67.71 66.80
Natural Gas (/MMBTU)
Henry Hub first of month 3.15 2.64 2.23 2.50 2.63 1.95 1.71 1.83
Average Realized Prices
Total (/BBL) 50.59 50.50 47.07 47.01 48.78 38.81 23.09 32.15
Crude Oil (/BBL)
Consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 25.10 38.81
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 25.32 38.52
Total 59.45 64.88 59.57 60.17 60.99 48.86 25.10 38.80
NGL (/BBL)
Consolidated operations 22.74 19.97 14.33 18.26 18.73 12.81 8.29 10.85
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 23.93 32.38
Total 23.85 21.65 15.59 19.67 20.09 14.82 9.88 12.63
Bitumen (/BBL)
Consolidated operations 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) (3.09 )
Equity affiliates - - - - - - - -
Total 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) (3.09 )
Natural Gas (/MCF)
Consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 2.64 3.19
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 3.90 4.65
Total 6.00 4.76 4.74 4.62 5.03 4.30 3.22 3.81
Exploration Expenses ( Millions)
Dry holes 10 16 139 35 200 36 3 39
Leasehold impairment 17 25 154 25 221 31 - 31
Total noncash expenses 27 41 293 60 421 67 3 70
Other (G&A, G&G and lease rentals) 83 81 67 91 322 121 94 215
Total exploration expenses 110 122 360 151 743 188 97 285
U.S. exploration expenses 75 70 319 60 524 99 72 171
International exploration expenses 35 52 41 91 219 89 25 114
DD&A ( Millions)
Alaska 205 208 200 192 805 209 191 400
Lower 48 621 709 731 761 2,822 707 548 1,255
Canada 56 48 63 63 230 69 66 135
Europe and North Africa 273 173 222 218 886 196 167 363
Asia Pacific and Middle East 375 338 332 240 1,285 217 170 387
Other International - - - - - - - -
Corporate and Other 16 14 18 14 62 13 16 29
Total DD&A 1,546 1,490 1,566 1,488 6,090 1,411 1,158 2,569

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 210 199 190 205 202 198 153 175
Lower 48 245 269 277 274 266 270 166 218
Canada 1 1 1 1 1 2 5 4
Norway 89 73 91 85 84 84 75 80
United Kingdom 25 20 19 - 16 - - -
Libya 38 37 39 39 38 9 - 4
Europe and North Africa 152 130 149 124 138 93 75 84
Australia/Timor-Leste 6 7 6 5 6 4 3 4
China 41 37 35 29 35 31 30 31
Indonesia 2 2 2 2 2 2 2 2
Malaysia 46 43 36 41 42 42 26 33
Equity affiliates 12 14 14 14 13 12 14 13
AP/ME 107 103 93 91 98 91 75 83
Total 715 702 710 695 705 654 474 564
NGL (MBD)
Alaska 17 17 11 16 15 19 13 16
Lower 48 74 82 84 85 81 89 64 77
Canada - 1 - - - 1 2 1
Norway 4 3 4 5 4 5 5 5
United Kingdom 4 3 3 - 3 - - -
Europe and North Africa 8 6 7 5 7 5 5 5
Australia/Timor-Leste 4 4 4 4 4 2 1 2
Equity affiliates 7 8 8 8 8 7 8 7
AP/ME 11 12 12 12 12 9 9 9
Total 110 118 114 118 115 123 93 108
Bitumen (MBD)
Canada 63 51 63 64 60 66 34 50
Total 63 51 63 64 60 66 34 50
Natural Gas (MMCFD)
Alaska 8 7 6 8 7 8 8 8
Lower 48 568 593 649 677 622 679 486 582
Canada 7 8 9 11 9 20 40 30
Norway 263 244 226 284 254 297 263 280
United Kingdom 310 247 218 - 193 - - -
Libya 31 27 29 36 31 13 1 7
Europe and North Africa 604 518 473 320 478 310 264 287
Australia/Timor-Leste 273 202 222 203 225 237 114 175
Indonesia 311 314 324 333 321 309 266 288
Malaysia 81 62 112 109 91 75 43 59
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,056 1,046
AP/ME 1,653 1,642 1,734 1,725 1,689 1,657 1,479 1,568
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,277 2,475
Total (MBOED)
Alaska 228 217 202 222 218 218 167 192
Lower 48 414 450 469 472 451 472 311 392
Canada 65 54 66 67 63 72 48 60
Norway 137 117 133 137 131 139 124 132
United Kingdom 80 64 58 - 50 - - -
Libya 43 42 44 45 43 11 - 5
Europe and North Africa 260 223 235 182 224 150 124 137
Australia/Timor-Leste 56 45 47 43 48 46 24 35
China 41 37 35 29 35 31 30 31
Indonesia 54 54 56 58 56 54 46 50
Malaysia 60 53 55 59 57 54 33 43
Equity affiliates 183 199 201 202 196 192 198 195
AP/ME 394 388 394 391 392 377 331 354
Total 1,361 1,332 1,366 1,334 1,348 1,289 981 1,135
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
AVERAGE REALIZED PRICES
Crude Oil (/BBL)
Consolidated operations
Alaska 62.81 67.57 62.78 63.43 64.12 54.78 26.81 42.52
Lower 48 53.15 59.17 54.38 54.34 55.30 40.97 19.87 32.92
Canada - - - - 40.87 - 8.69 15.39
Norway 63.16 70.09 64.00 64.25 65.19 54.92 32.32 43.98
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 32.32 44.70
Australia/Timor-Leste 59.39 62.22 57.02 58.32 59.29 47.35 47.21 47.34
China 59.23 65.40 59.07 63.17 61.26 54.10 25.09 39.69
Indonesia 47.07 51.62 48.79 50.35 49.55 29.33 30.64 29.91
Malaysia 67.33 73.99 66.26 69.74 69.45 57.67 30.59 46.42
AP/ME 62.94 69.78 62.01 65.90 65.02 54.71 27.98 43.02
Total consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 25.10 38.81
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 25.32 38.52
Total 59.45 64.88 59.57 60.17 60.99 48.86 25.10 38.80
NGL (/BBL)
Consolidated operations
Lower 48 20.66 17.91 13.04 16.27 16.83 11.85 6.95 9.81
Canada - - - - 19.87 - 1.64 1.89
Norway 33.37 29.42 24.38 32.42 30.67 21.54 16.76 18.75
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 16.76 18.75
Australia/Timor-Leste 40.13 39.97 30.13 37.20 37.85 39.34 27.90 33.21
AP/ME 40.13 39.97 30.13 37.20 37.85 39.34 27.90 33.21
Total consolidated operations 22.74 19.97 14.33 18.26 18.73 12.81 8.29 10.85
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 23.93 32.38
Total 23.85 21.65 15.59 19.67 20.09 14.82 9.88 12.63
Bitumen (/BBL)
Canada* 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) (3.09 )
Total 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) (3.09 )
Natural Gas (/MCF)
Consolidated operations
Alaska 3.42 3.19 3.01 3.09 3.19 3.07 2.56 2.82
Lower 48 2.74 2.10 1.80 1.92 2.12 1.48 1.18 1.36
Canada - - - - 0.49 - 0.79 1.05
Norway 6.39 4.31 3.37 4.61 4.72 3.65 2.21 3.00
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 2.21 3.03
Australia/Timor-Leste** 0.83 0.78 0.76 0.77 0.79 6.43 10.62 10.04
Indonesia 6.69 7.19 6.69 6.66 6.81 6.58 4.69 5.70
Malaysia 3.84 3.57 3.44 3.47 3.56 2.93 2.22 2.67
AP/ME 6.36 5.89 5.78 5.60 5.91 5.94 4.74 5.45
Total consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 2.64 3.19
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 3.90 4.65
Total 6.00 4.76 4.74 4.62 5.03 4.30 3.22 3.81
*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.

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
CORPORATE AND OTHER
Corporate and Other Earnings (Loss) ( Millions) 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (1,590 )
Detail of Earnings (Loss) ( Millions)
Net interest expense (196 ) (131 ) (123 ) (154 ) (604 ) (155 ) (174 ) (329 )
Corporate G&A expenses (65 ) (49 ) (34 ) (104 ) (252 ) 50 (90 ) (40 )
Technology* 96 (10 ) 43 (6 ) 123 1 (9 ) (8 )
Other 436 (3 ) 100 238 771 (1,671 ) 458 (1,213 )
Total 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (1,590 )
*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 ) (432 )
Capitalized interest 10 13 16 18 57 14 14 28
Interest revenue 32 33 45 39 149 42 22 64
Total (201 ) (132 ) (139 ) (157 ) (629 ) (160 ) (180 ) (340 )
Debt
Total debt ( Millions) 14,945 14,923 14,920 14,895 14,895 14,973 14,998 14,998
Debt-to-capital ratio (%) 31 % 31 % 30 % 30 % 30 % 32 % 32 % 32 %
Equity ( Millions) 32,981 33,074 35,239 35,050 35,050 31,387 31,493 31,493

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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