Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2023-02-02 For: 2023-02-02
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Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

    Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

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

Date of Report (date of earliest event reported):   February 2, 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. ☐

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Item 2.02 Results of Operations and Financial Condition.

On February 2, 2023 ConocoPhillips issued a press release announcing the company's financial and operating results for both the quarter ended and year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.  Additional financial and operating information about the quarter and full year is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.      Description

99.1 — Press<br> release issued by ConocoPhillips on February 2, 2023.
99.2 — Supplemental<br> 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/ Christopher P. Delk
Christopher P. Delk
Vice President, Controller and General Tax Counsel
February 2, 2023

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Exhibit 99.1

ConocoPhillips Reports Fourth-Quarter, Full-Year 2022 Results and 176% Preliminary Reserve Replacement Ratio; Announces 2023 Guidance and Planned Return of Capital of $11 Billion; Declares Quarterly Dividend and Variable Return of Cash Distribution

HOUSTON--(BUSINESS WIRE)--February 2, 2023--ConocoPhillips (NYSE: COP) today reported fourth-quarter 2022 earnings of $3.2 billion, or $2.61 per share, compared with fourth-quarter 2021 earnings of $2.6 billion, or $1.98 per share. Excluding special items, fourth-quarter 2022 adjusted earnings were $3.4 billion, or $2.71 per share, compared with fourth-quarter 2021 adjusted earnings of $3.0 billion, or $2.27 per share. Special items for the current quarter were primarily driven by impairment of certain aged, suspended wells and corporate expenses.

Full-year 2022 earnings were $18.7 billion, or $14.57 per share, compared with full-year 2021 earnings of $8.1 billion, or $6.07 per share. Excluding special items, full-year 2022 adjusted earnings were $17.3 billion, or $13.52 per share, compared with full-year 2021 earnings of $8.0 billion, or $6.01 per share.

“In 2022, ConocoPhillips marked 10 years as an independent E&P company with strong financial and operational results across our business, thanks to the hard work and dedication of our talented workforce. We returned $15 billion of capital to shareholders and achieved record production in our Lower 48 assets, while adding new high-quality strategic projects to enhance our global portfolio for decades to come. Building on 60 years of global LNG expertise, we expanded our LNG business in Australia, Germany, Qatar and along the U.S. Gulf Coast. We also set a new methane emissions intensity target in support of our continuing focus on low GHG production,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “As we enter our second decade, we remain committed to our Triple Mandate of responsibly and reliably meeting energy transition pathway demand, delivering competitive returns on and of capital, and achieving our net-zero operational emissions ambitions. Our deep and diversified portfolio of low cost-of-supply assets continues to generate robust cash flow, enabling us to start the year with an $11 billion return of capital target.”

Full-Year 2022 Summary

  • Generated cash provided by operating activities of $28.3 billion and cash from operations (CFO) of $28.5 billion; ended the year with cash and short-term investments of $9.5 billion.
  • Distributed $15 billion to shareholders through three-tier framework including $5.7 billion in cash through the ordinary dividend and variable return of cash (VROC) and $9.3 billion through share repurchases, representing 53% of CFO.
  • Expanded global LNG business through participation in QatarEnergy’s North Field East (NFE) and North Field South (NFS) projects; executed 15-year regasification agreement at German LNG Terminal; acquired additional 10% interest in APLNG; signed 20-year agreement for 5 MTPA of LNG offtake and executed agreement to purchase 30% equity stake in Phase 1 of Port Arthur LNG (PALNG).
  • Delivered full-year production of 1,738 thousand barrels of oil equivalent per day (MBOED) and record Lower 48 production.
  • Fully integrated acquired Permian assets and executed multiple acreage swaps, coring up approximately 25,000 acres since acquisition to provide over a year’s worth of additional two mile-plus long-lateral drilling inventory.
  • Received license extension for Norway’s Greater Ekofisk area to 2048 and license adjustments for China’s Bohai Penglai Fields to 2039.
  • Generated $3.5 billion in disposition proceeds through monetization of the company’s Cenovus Energy (CVE) shares and noncore asset sales.
  • Retired $3.3 billion in debt toward the company’s $5 billion debt reduction target.
  • Achieved a record 27% return on capital employed; 31% cash-adjusted return on capital employed.
  • Joined Oil and Gas Methane Partnership 2.0, published a Plan for the Net-Zero Energy Transition and set a new 2030 methane emissions intensity target of approximately 0.15% of gas produced, enhancing our commitment to ESG excellence and leadership.

Return of Capital Update

ConocoPhillips announced its 2023 planned return of capital to shareholders of $11 billion. The company declared a quarterly ordinary dividend of $0.51 per share, payable March 1, 2023, to stockholders of record at the close of business on Feb. 14, 2023. In addition, the company announced a VROC of $0.60 per share, payable April 14, 2023, to stockholders of record at the close of business on March 29, 2023.

Fourth-Quarter Review

Production for the fourth quarter of 2022 was 1,758 MBOED, an increase of 150 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions and the conversion of previously acquired Concho-contracted volumes from a two-stream to a three-stream basis, fourth-quarter 2022 production decreased by 3 MBOED or 0.2% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline; however, total company fourth-quarter production was lower overall, primarily due to weather and downtime impacts in Lower 48.

In Lower 48, production averaged 997 MBOED, including Permian of 671 MBOED, Eagle Ford of 214 MBOED, and Bakken of 96 MBOED. In Canada, drilling and completion activities continued at Montney with the fourth pad coming online during the quarter while construction progressed on the second phase of the company’s central processing facility. In Norway, the company progressed drilling programs on the Tommeliten A and Eldfisk North projects. In Libya, the company acquired an additional 4.1% interest in the Waha Concession, bringing current ownership to 20.4%.

Earnings increased from fourth-quarter 2021 primarily due to higher volumes and improved realized prices, in addition to the absence of both 2021 non-cash impairments and gains on CVE equity. This was partially offset by higher operating costs and depreciation, depletion and amortization (DD&A) associated with higher volumes, in addition to commercial and inventory timing and impairment of certain aged, suspended wells. Adjusted earnings increased primarily due to higher volumes and improved realized prices, partially offset by higher operating costs and DD&A associated with higher volumes, and commercial and inventory timing.

The company’s total average realized price was $71.05 per barrel of oil equivalent (BOE), 8% higher than the $65.56 per BOE realized in the fourth quarter of 2021. Production remains unhedged, thus realizing the full impact of changes in marker prices.

For the fourth quarter, cash provided by operating activities was $6.6 billion. Excluding a $0.1 billion change in operating working capital, ConocoPhillips generated CFO of $6.5 billion. The company funded $2.5 billion of capital expenditures and investments, including $2.2 billion in base capital and approximately $0.3 billion for acquisitions and NFE payments. The company distributed $2.4 billion in ordinary dividends and VROC and repurchased $2.7 billion of shares.

Full-Year Review

Production for 2022 was 1,738 MBOED, an increase of 171 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, the conversion of previously acquired Concho-contracted volumes from a two-stream to a three-stream basis and 2021 Winter Storm Uri impacts, production decreased 16 MBOED or 1% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline; however, production was lower overall, primarily due to fourth quarter weather impacts and downtime in Lower 48.

The company’s total realized price for 2022 was $79.82 per BOE, 46% higher than the $54.63 per BOE realized in 2021, reflecting higher marker prices.

In 2022, cash provided by operating activities was $28.3 billion. Excluding a $0.2 billion change in operating working capital, ConocoPhillips generated CFO of $28.5 billion. Dispositions generated $3.5 billion, including $1.4 billion from the sale of CVE shares, $0.5 billion for CVE contingency payments, $0.7 billion from the sale of Indonesia and approximately $0.8 billion from sales of noncore assets. The company funded $10.2 billion of capital expenditures and investments, including $8.1 billion in base capital and approximately $2.1 billion which includes the acquisition of an additional 10% interest in APLNG, Lower 48 bolt-on acquisitions and NFE payments. In addition, the company paid $5.7 billion in ordinary dividends and VROC, repurchased $9.3 billion of shares and retired $3.3 billion in debt.

Reserves Update

Preliminary 2022 year-end proved reserves are 6.6 billion BOE, with total reserve replacement ratio of 176%, including closed acquisitions and dispositions and market factors. Reserve changes excluding closed acquisitions and dispositions result in an organic reserve replacement ratio of 177%.

Final information related to the company’s 2022 oil and gas reserves, will be provided in ConocoPhillips’ Annual Report on Form 10-K, to be filed with the SEC in February.

Outlook

The company’s 2023 total capital expenditure guidance is $10.7 to $11.3 billion, which includes $9.1 to $9.3 billion for base capital and $1.6 to $2.0 billion for anticipated major project spending at NFE, NFS, PALNG and Willow. Base capital includes funding for ongoing development drilling programs; exploration and appraisal activities; base maintenance; and projects to reduce the company’s Scope 1 and 2 emissions intensity and fund investments in several early-stage low-carbon opportunities that address end-use emissions.

The company has received and is now reviewing the Bureau of Land Management’s final Supplemental Environmental Impact Statement for Willow Project, a major milestone in the permitting process that commenced in 2018.

The company’s 2023 production guidance is 1.76 to 1.80 million barrels of oil equivalent per day (MMBOED). First-quarter 2023 production is expected to be 1.72 MMBOED to 1.76 MMBOED, which includes 35 MBOED of turnaround and stabilizer expansion in Eagle Ford.

Guidance for 2023 includes adjusted operating cost of $8.2 billion; adjusted corporate segment net loss of $0.9 billion and DD&A of $8.1 billion. Guidance excludes potential special items.

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, $94 billion of total assets and approximately 9,500 employees at Dec. 31, 2022. Production averaged 1,738 MBOED for the 12 months ended Dec. 31, 2022, and preliminary proved reserves were 6.6 BBOE as of Dec. 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 the impact of public health crises, including pandemics (such as COVID-19) and epidemics and any related company or government policies or actions; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from any ongoing military conflict, including the conflict between Russia and Ukraine and the global response to it, 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; changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; 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; 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, 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 under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; 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 any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related 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 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 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, cyber attacks 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, operating costs, adjusted operating costs, cash from operations (CFO), return on capital employed (ROCE), cash adjusted ROCE, and adjusted corporate segment net loss.

The company believes that the non-GAAP measures adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss 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. 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 ROCE is a good indicator of long-term company and management performance. ROCE is a measure of the profitability of ConocoPhillips' capital employed in its business. ConocoPhillips calculates ROCE as a ratio, the numerator of which is net income adjusted for special non-reoccurring items, plus after-tax interest expense, and the denominator of which is average total equity plus total debt. 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, reserve replacement and organic reserve replacement. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of December 31, 2022. The impact of closed dispositions assume they closed January 1, 2021, while the 2021 impact of the closed Shell Permian acquisition and the additional 10% APLNG interest acquisition assume they closed January 1, 2021 and February 1, 2021, respectively. Impacts for 2021 and 2022 also include a closed Lower 48 bolt-on acquisition and Libya additional working interest percentage assuming a close date of January 1, 2021. 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. Reserve replacement is defined by the company as a ratio representing the change in proved reserves, net of production, divided by current year production. Organic reserve replacement is defined as a ratio representing the change in proved reserves, net of production and excluding acquisitions and dispositions, divided by current year production. The company believes that reserve replacement and organic reserve replacement are useful to investors to help understand how changes in proved reserves, net of production, compare with the company’s current year production, inclusive and exclusive of acquisitions and dispositions, respectively. Return of capital 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
4Q21 2022 FY 2021 FY
Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars)
Earnings $ 3,249 2.61 2,627 1.98 $ 18,680 14.57 8,079 6.07
Adjustments:
(Gain) loss on asset sales ) 5 (16 ) (0.01 ) (126 ) 29 (97 ) (0.07 ) (968 ) 200 (768 ) (0.59 ) (347 ) 32 (315 ) (0.24 )
Pending claims and settlements (21 ) 66 0.05 - - - - 67 8 75 0.06 48 (10 ) 38 0.03
Pension settlement expense - - - 29 (6 ) 23 0.02 - - - - 99 (20 ) 79 0.06
Transaction and restructuring expenses - - - 69 (16 ) 53 0.04 28 (8 ) 20 0.01 435 (94 ) 341 0.26
Impairments - - - 773 (20 ) 753 0.56 - - - - 684 1 685 0.51
(Gain) loss on CVE shares - - - (297 ) - (297 ) (0.22 ) (251 ) - (251 ) (0.19 ) (1,040 ) - (1,040 ) (0.78 )
(Gain) loss on FX derivative - - - (21 ) 4 (17 ) (0.01 ) 10 (2 ) 8 - (9 ) 1 (8 ) (0.01 )
Net loss on accelerated settlement of Concho hedging program - - - - - - - - - - - 132 (31 ) 101 0.08
(Gain) loss on debt extinguishment and exchange fees - - - - - - - (44 ) 52 8 - - - - -
Tax adjustments (23 ) (23 ) (0.02 ) - (35 ) (35 ) (0.03 ) - (531 ) (531 ) (0.42 ) - 40 40 0.03
Exploration Expenses (30 ) 99 0.08 - - - 129 (30 ) 99 0.08 - - - -
Adjusted earnings / (loss) $ 3,375 $ 2.71 3,010 2.27 $ 17,340 $ 13.52 8,000 6.01
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 net cash provided by operating activities to cash from operations
Millions, Except as Indicated
2022 FY
Net Cash Provided by Operating Activities 28,314
Adjustments:
Net operating working capital changes (234 )
Cash from operations 28,548

All values are in US Dollars.

ConocoPhillips
Table 3: Return on capital employed (ROCE) and Cash Adjusted ROCE
Millions, Except as Indicated
CASH ADJUSTED ROCE
Numerator 2021 FY 2022 FY 2021 FY
Net Income Attributable to ConocoPhillips 8,079 18,680 8,079
Adjustment to exclude special items ) (79 ) (1,340 ) (79 )
Net income attributable to noncontrolling interests - - -
After-tax interest expense 698 641 698
After-tax interest income - (152 ) (26 )
ROCE Earnings 8,698 17,829 8,672
Denominator
Average total equity¹ 42,293 48,801 42,293
Average total debt² 19,338 17,742 19,338
Average total cash³ - (8,589 ) (8,430 )
Average capital employed 61,631 57,953 53,201
ROCE (percent) % 14 % 31 % 16 %
¹Average total equity is the average of beginning total equity and ending total equity by quarter.
²Average total debt is the average of beginning long-term debt and short-term debt and ending long-term<br> debt and short-term debt by quarter.
3Average total cash is the average of beginning cash, cash equivalents, restricted cash and short-term investments and ending<br> cash, cash equivalents, restricted cash and short-term investments by quarter.

All values are in US Dollars.

ConocoPhillips
Table 4: Reconciliation of reported production to pro forma underlying production
In MBOED, Except as Indicated
4Q22 4Q21 2022 2021
Total Reported ConocoPhillips Production 1,758 1,608 1,738 1,567
Closed Dispositions^1^ - (74 ) (17 ) (85 )
Closed Acquisitions ^2^ 6 223 12 220
Total Pro Forma Underlying Production 1,764 1,757 1,733 1,702
Estimated Downtime from Winter Storm Uri^3^ - - - 12
Estimated Uplift from 2 to 3 stream conversion^4^ (50 ) (40 ) (45 ) (10 )
^1^Includes production related to the completed Indonesia disposition and various Lower 48 dispositions.
^2^Includes production related to the acquisition of Shell's Permian assets as well as the additional 10% shareholding interest in APLNG, a Lower 48 bolt-on acquisition, and Libya additional working interest percentage. 2021 has been pro forma adjusted for these acquisitions and assumes 180 MBOED for the Shell Permian assets.
^3^Estimated production impacts from Winter Storm Uri, which are excluded from Total Reported Production and Total Pro Forma Underlying Production.
^4^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 included in Total Reported Production and Total Pro Forma Underlying Production.
ConocoPhillips
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Table 5: Reconciliation of production and operating expenses to adjusted operating costs
Millions, Except as Indicated
2023 FY Guidance
Production and operating expenses ~7,300
Adjustments:
Selling, general and administrative (G&A) expenses ~700
Exploration G&A, G&G and lease rentals ~200
Operating Costs ~8,200
Adjustments to exclude special items:
Pending claims and settlements -
Transaction and restructuring expenses -
Adjusted Operating Costs ~8,200

All values are in US Dollars.

ConocoPhillips
Table 6: Reconciliation of adjusted corporate segment net loss
Millions, Except as Indicated
2023 FY Guidance
Corporate and Other earnings ) ~(900)
Adjustments to exclude special items:
(Gain) loss on CVE shares ) -
(Gain) loss on FX derivative -
Pending claims and settlements -
Debt extinguishment and exchange fees ) -
Income tax on special items ) -
Adjusted corporate segment net loss ) ~(900)

All values are in US Dollars.

ConocoPhillips
Table 7: Calculation of Reserve Replacement Ratios
MMBOE, Except as Indicated
End of 2021 6,101
End of 2022 6,599
Change in reserves 498
Production^1^ 653
Change in reserves excluding production^1^ 1,151
Total reserve replacement ratio 176 %
Production^1^ 653
Purchases^2^ (143 )
Sales^2^ 149
Changes in reserves excluding production^1^, purchases^2^ and sales^2^ 1,157
2022 organic reserve replacement ratio 177 %
^1^Production includes fuel gas.<br><br> <br>^2^Purchases refers to acquisitions and sales refers to dispositions.

Contacts

Dennis Nuss (media)

                281-293-1149 

                *dennis.nuss@conocophillips.com*

Investor Relations

                281-293-5000 

                *investor.relations@conocophillips.com*
Exhibit 99.2
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2022
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions, Except as Indicated
CONSOLIDATED INCOME STATEMENT
Revenues and Other Income
Sales and other operating revenues 9,826 9,556 11,326 15,120 45,828 17,762 21,161 21,013 18,558 78,494
Equity in earnings of affiliates 122 139 239 332 832 426 524 561 570 2,081
Gain (loss) on dispositions 233 59 2 192 486 817 262 (40 ) 38 1,077
Other income 378 457 49 319 1,203 286 42 80 96 504
Total Revenues and Other Income 10,559 10,211 11,616 15,963 48,349 19,291 21,989 21,614 19,262 82,156
Costs and Expenses
Purchased commodities 4,483 2,998 4,179 6,498 18,158 6,751 9,234 9,251 8,735 33,971
Production and operating expenses 1,383 1,379 1,389 1,543 5,694 1,581 1,741 1,799 1,885 7,006
Selling, general and administrative expenses 311 117 128 163 719 187 96 148 192 623
Exploration expenses 84 57 65 138 344 69 143 89 263 564
Depreciation, depletion and amortization 1,886 1,867 1,672 1,783 7,208 1,823 1,810 1,872 1,999 7,504
Impairments (3 ) 2 (89 ) 764 674 2 2 2 (18 ) (12 )
Taxes other than income taxes 370 381 403 480 1,634 814 1,020 843 687 3,364
Accretion on discounted liabilities 62 63 61 56 242 61 61 60 68 250
Interest and debt expense 226 220 219 219 884 217 211 199 178 805
Foreign currency transactions (gain) loss 19 10 (10 ) (41 ) (22 ) 24 (70 ) (93 ) 39 (100 )
Other expenses 24 37 17 24 102 (136 ) 86 4 (1 ) (47 )
Total Costs and Expenses 8,845 7,131 8,034 11,627 35,637 11,393 14,334 14,174 14,027 53,928
Income before income taxes 1,714 3,080 3,582 4,336 12,712 7,898 7,655 7,440 5,235 28,228
Income tax provision 732 989 1,203 1,709 4,633 2,139 2,510 2,913 1,986 9,548
Net Income 982 2,091 2,379 2,627 8,079 5,759 5,145 4,527 3,249 18,680
Net Income Per Share of Common Stock (dollars)
Basic 0.75 1.55 1.78 1.99 6.09 4.41 3.98 3.56 2.61 14.62
Diluted 0.75 1.55 1.78 1.98 6.07 4.39 3.96 3.55 2.61 14.57
Average Common Shares Outstanding (in thousands)*
Basic 1,300,375 1,348,637 1,332,286 1,315,225 1,324,194 1,301,930 1,289,791 1,256,893 1,239,277 1,274,028
Diluted 1,302,691 1,353,201 1,336,379 1,320,829 1,328,151 1,307,404 1,295,844 1,269,321 1,243,037 1,278,163
*Ending Common Shares Outstanding is 1,223,856 as of December 31, 2022, compared with 1,246,071 as of<br> September 30, 2022.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 217 480 517 574 1,788 802 983 800 652 3,237
Lower 48 609 1,502 2,094 2,117 6,322 3,547 4,456 3,542 2,557 14,102
Canada 16 135 205 252 608 381 418 158 (37 ) 920
Europe, Middle East and North Africa 511 697 878 1,624 3,710 1,774 1,533 2,615 1,767 7,689
Asia Pacific 432 289 377 (162 ) 936 1,310 637 627 643 3,217
Other International (5 ) (6 ) (140 ) (9 ) (160 ) - - 2 - 2
Corporate and Other (66 ) (17 ) (349 ) (60 ) (492 ) 84 (372 ) (304 ) (347 ) (939 )
Consolidated 1,714 3,080 3,582 4,336 12,712 7,898 7,655 7,440 5,235 28,228
EFFECTIVE INCOME TAX RATES
Alaska* 26.8 % 22.8 % 21.6 % 21.4 % 22.5 % 27.1 % 30.1 % 27.6 % 23.1 % 27.4 %
Lower 48 23.2 % 21.7 % 22.1 % 21.7 % 22.0 % 21.4 % 19.6 % 25.1 % 22.1 % 21.9 %
Canada 33.7 % 24.9 % 24.4 % 24.2 % 24.7 % 23.7 % 24.3 % 24.9 % 67.4 % 22.4 %
Europe, Middle East and North Africa 70.1 % 70.3 % 72.5 % 65.2 % 68.5 % 76.8 % 74.9 % 64.7 % 70.3 % 70.8 %
Asia Pacific 26.6 % 39.4 % 31.9 % -82.9 % 51.6 % 13.3 % 17.7 % 16.9 % 13.6 % 14.9 %
Other International 28.0 % 7.6 % 30.4 % 91.6 % 33.0 % -137.8 % 43.0 % 2484.7 % 3159.7 % 2211.2 %
Corporate and Other -85.1 % 496.6 % 38.9 % 198.2 % 57.3 % -546.2 % 6.2 % 21.4 % 17.1 % 64.9 %
Consolidated 42.7 % 32.1 % 33.6 % 39.4 % 36.4 % 27.1 % 32.8 % 39.1 % 37.9 % 33.8 %
*Alaska including taxes other than income taxes. 50.3 % 38.8 % 36.0 % 37.9 % 39.3 % 47.8 % 52.1 % 48.6 % 43.0 % 48.4 %

All values are in US Dollars.

2022
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
EARNINGS BY SEGMENT
Alaska 159 371 405 451 1,386 584 687 580 501 2,352
Lower 48 468 1,175 1,631 1,658 4,932 2,790 3,581 2,653 1,991 11,015
Canada 10 102 155 191 458 291 316 119 (12 ) 714
Europe, Middle East and North Africa 153 207 241 566 1,167 412 385 922 525 2,244
Asia Pacific 317 175 257 (296 ) 453 1,136 525 520 555 2,736
Other International (4 ) (5 ) (97 ) (1 ) (107 ) - - (28 ) (23 ) (51 )
Corporate and Other (121 ) 66 (213 ) 58 (210 ) 546 (349 ) (239 ) (288 ) (330 )
Consolidated 982 2,091 2,379 2,627 8,079 5,759 5,145 4,527 3,249 18,680
SPECIAL ITEMS
Alaska (20 ) (2 ) (1 ) 3 (20 ) 23 - - 26 49
Lower 48 (236 ) (10 ) 56 (109 ) (299 ) 16 69 (42 ) 16 59
Canada (3 ) 52 77 97 223 176 118 (12 ) (82 ) 200
Europe, Middle East and North Africa - - (5 ) - (5 ) - (58 ) - - (58 )
Asia Pacific 199 - - (688 ) (489 ) 534 - 27 - 561
Other International - - (105 ) (3 ) (108 ) - - (29 ) (20 ) (49 )
Corporate and Other 140 335 (15 ) 317 777 721 (70 ) (7 ) (66 ) 578
Consolidated 80 375 7 (383 ) 79 1,470 59 (63 ) (126 ) 1,340
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 179 373 406 448 1,406 561 687 580 475 2,303
Lower 48 704 1,185 1,575 1,767 5,231 2,774 3,512 2,695 1,975 10,956
Canada 13 50 78 94 235 115 198 131 70 514
Europe, Middle East and North Africa 153 207 246 566 1,172 412 443 922 525 2,302
Asia Pacific 118 175 257 392 942 602 525 493 555 2,175
Other International (4 ) (5 ) 8 2 1 - - 1 (3 ) (2 )
Corporate and Other (261 ) (269 ) (198 ) (259 ) (987 ) (175 ) (279 ) (232 ) (222 ) (908 )
Consolidated 902 1,716 2,372 3,010 8,000 4,289 5,086 4,590 3,375 17,340
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 26.4 % 22.7 % 21.7 % 22.4 % 22.8 % 30.0 % 30.1 % 27.6 % 27.1 % 28.9 %
Lower 48 23.3 % 21.7 % 22.0 % 21.8 % 22.1 % 22.1 % 19.6 % 25.1 % 22.1 % 22.1 %
Canada 28.3 % 26.2 % 25.7 % 25.3 % 25.8 % 24.4 % 25.1 % 24.5 % 24.0 % 24.6 %
Europe, Middle East and North Africa 70.2 % 70.3 % 72.7 % 65.2 % 68.6 % 76.8 % 71.1 % 64.7 % 70.3 % 70.1 %
Asia Pacific 49.3 % 39.4 % 31.9 % 25.5 % 33.9 % 22.4 % 17.7 % 17.7 % 13.6 % 18.1 %
Other International 28.0 % 7.6 % -7.1 % 143.6 % 107.8 % -137.8 % 43.0 % 16.8 % 500.9 % 168.2 %
Corporate and Other 8.1 % 18.7 % 38.9 % 25.1 % 23.1 % 38.1 % 3.4 % 21.9 % 14.8 % 19.6 %
Consolidated 44.8 % 36.8 % 34.2 % 36.8 % 37.1 % 36.8 % 32.2 % 38.7 % 37.8 % 36.2 %

All values are in US Dollars.

2021 2022
$ Millions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
DETAILED SPECIAL ITEMS
Alaska
Transaction and restructuring expenses (26 ) (2 ) (1 ) (4 ) (33 ) - - - - -
Subtotal before income taxes (26 ) (2 ) (1 ) (4 ) (33 ) - - - - -
Income tax provision (benefit)^1^ (6 ) - - (7 ) (13 ) (23 ) - - (26 ) (49 )
Total (20 ) (2 ) (1 ) 3 (20 ) 23 - - 26 49
Lower 48
Transaction and restructuring expenses (175 ) (13 ) (15 ) (57 ) (260 ) (14 ) (14 ) - - (28 )
Gain (loss) on accelerated settlement of Concho hedging program (132 ) - - - (132 ) - - - - -
Impairments - - 89 (85 ) 4 - - - - -
Gain (loss) on asset sales - - - - - - 101 (55 ) 21 67
Subtotal before income taxes (307 ) (13 ) 74 (142 ) (388 ) (14 ) 87 (55 ) 21 39
Income tax provision (benefit)^2^ (71 ) (3 ) 18 (33 ) (89 ) (30 ) 18 (13 ) 5 (20 )
Total (236 ) (10 ) 56 (109 ) (299 ) 16 69 (42 ) 16 59
Canada
Exploration Expense - - - - - - - - (129 ) (129 )
Gain (loss) on asset sales - 68 100 126 294 229 153 (15 ) - 367
Transaction and restructuring expenses (3 ) - - - (3 ) - - - - -
Subtotal before income taxes (3 ) 68 100 126 291 229 153 (15 ) (129 ) 238
Income tax provision (benefit)^6^ - 16 23 29 68 53 35 (3 ) (47 ) 38
Total (3 ) 52 77 97 223 176 118 (12 ) (82 ) 200
Europe, Middle East and North Africa
Transaction and restructuring expenses (1 ) - (24 ) - (25 ) - - - - -
Subtotal before income taxes (1 ) - (24 ) - (25 ) - - - - -
Income tax provision (benefit)^4^ (1 ) - (19 ) - (20 ) - 58 - - 58
Total - - (5 ) - (5 ) - (58 ) - - (58 )
Asia Pacific
Gain (loss) on asset sales 200 - - - 200 534 - - - 534
Impairments - - - (688 ) (688 ) - - - - -
Pending claims and settlements - - - - - - - 27 - 27
Transaction and restructuring expenses (1 ) - - - (1 ) - - - - -
Subtotal before income taxes 199 - - (688 ) (489 ) 534 - 27 - 561
Income tax provision (benefit) - - - - - - - - - -
Total 199 - - (688 ) (489 ) 534 - 27 - 561
Other International
Gain (loss) on asset sales - - (147 ) - (147 ) - - - - -
Transaction and restructuring expenses - - - (4 ) (4 ) - - - - -
Subtotal before income taxes - - (147 ) (4 ) (151 ) - - - - -
Income tax provision (benefit)^5^ - - (42 ) (1 ) (43 ) - - 29 20 49
Total - - (105 ) (3 ) (108 ) - - (29 ) (20 ) (49 )
Corporate and Other
Pension settlement expense - (42 ) (28 ) (29 ) (99 ) - - - - -
Pending claims and settlements - (48 ) - - (48 ) - - (7 ) (87 ) (94 )
Transaction and restructuring expense (85 ) (8 ) (12 ) (4 ) (109 ) - - - - -
Gain (loss) on investment in Cenovus Energy 308 418 17 297 1,040 251 - - - 251
Gain (loss) on CAD FX derivative (4 ) (8 ) - - (12 ) - - - - -
Gain (loss) on AUD FX derivative - - - 21 21 (10 ) - - - (10 )
Gain (loss) on debt extinguishment and exchange fees - - - - - 127 (83 ) - - 44
Subtotal before income taxes 219 312 (23 ) 285 793 368 (83 ) (7 ) (87 ) 191
Income tax provision (benefit)^3^ 79 (23 ) (8 ) (32 ) 16 (353 ) (13 ) - (21 ) (387 )
Total 140 335 (15 ) 317 777 721 (70 ) (7 ) (66 ) 578
Total Company 80 375 7 (383 ) 79 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<br> Alaska.
^2^Includes a tax adjustment in Q1 2022 related to the closure of an audit.
^3^Includes tax adjustment related to foreign tax credits in Q1 2021; Q4 2021 and Q1 2022 tax<br> adjustment related to Indonesia disposition; Q1 2022 tax adjustments including the closure of an audit; Q4 2022 tax adjustment 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 a tax adjustment in Q4 2022 related to pending claims and settlements.
2022
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 2,831 6,608 9,833 5,028 5,028 6,414 6,909 8,010 6,458 6,458
Short-term investments 4,104 2,251 678 446 446 730 1,272 2,412 2,785 2,785
Accounts and notes receivable 4,339 4,401 5,336 6,543 6,543 7,807 8,081 7,338 7,075 7,075
Accounts and notes receivable—related parties 142 123 129 127 127 72 72 16 13 13
Investment in Cenovus Energy 1,564 1,802 1,416 1,117 1,117 - - - - -
Inventories 1,098 1,138 1,043 1,208 1,208 1,174 1,234 1,226 1,219 1,219
Prepaid expenses and other current assets 536 849 1,746 1,581 1,581 1,389 1,292 1,451 1,199 1,199
Total Current Assets 14,614 17,172 20,181 16,050 16,050 17,586 18,860 20,453 18,749 18,749
Investments and long-term receivables 8,286 8,013 8,058 7,113 7,113 8,309 8,203 8,204 8,225 8,225
Loans and advances—related parties 59 59 - - - - - - - -
Net properties, plants and equipment 58,270 57,717 56,689 64,911 64,911 64,642 64,008 63,673 64,866 64,866
Other assets 2,464 2,442 2,376 2,587 2,587 2,771 2,622 2,507 1,989 1,989
Total Assets 83,693 85,403 87,304 90,661 90,661 93,308 93,693 94,837 93,829 93,829
Liabilities
Accounts payable 3,779 3,591 4,101 5,002 5,002 4,875 5,845 6,242 6,113 6,113
Accounts payable—related parties 22 22 30 23 23 22 28 26 50 50
Short-term debt 689 1,205 920 1,200 1,200 1,160 676 664 417 417
Accrued income and other taxes 959 1,406 2,082 2,862 2,862 3,162 2,759 3,187 3,193 3,193
Employee benefit obligations 567 571 691 755 755 446 529 628 728 728
Other accruals 1,168 1,355 2,625 2,179 2,179 1,959 2,379 3,250 2,346 2,346
Total Current Liabilities 7,184 8,150 10,449 12,021 12,021 11,624 12,216 13,997 12,847 12,847
Long-term debt 19,338 18,805 18,748 18,734 18,734 17,586 16,295 16,297 16,226 16,226
Asset retirement obligations and accrued environmental costs 5,782 5,819 5,721 5,754 5,754 5,815 5,737 5,729 6,401 6,401
Deferred income taxes 4,982 5,331 5,630 6,179 6,179 6,556 6,694 7,218 7,726 7,726
Employee benefit obligations 1,530 1,297 1,162 1,153 1,153 1,085 1,080 1,087 1,074 1,074
Other liabilities and deferred credits 1,722 1,725 1,479 1,414 1,414 1,424 1,469 1,430 1,552 1,552
Total Liabilities 40,538 41,127 43,189 45,255 45,255 44,090 43,491 45,758 45,826 45,826
Equity
Common stock issued
Par value 21 21 21 21 21 21 21 21 21 21
Capital in excess of par 60,278 60,337 60,431 60,581 60,581 60,907 61,045 61,089 61,142 61,142
Treasury stock (47,672 ) (48,278 ) (49,521 ) (50,920 ) (50,920 ) (52,344 ) (54,644 ) (57,444 ) (60,189 ) (60,189 )
Accumulated other comprehensive loss (5,080 ) (4,920 ) (5,123 ) (4,950 ) (4,950 ) (4,808 ) (5,313 ) (5,865 ) (6,000 ) (6,000 )
Retained earnings 35,608 37,116 38,307 40,674 40,674 45,442 49,093 51,278 53,029 53,029
Total Equity 43,155 44,276 44,115 45,406 45,406 49,218 50,202 49,079 48,003 48,003
Total Liabilities and Equity 83,693 85,403 87,304 90,661 90,661 93,308 93,693 94,837 93,829 93,829

All values are in US Dollars.

2022
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 982 2,091 2,379 2,627 8,079 5,759 5,145 4,527 3,249 18,680
Depreciation, depletion and amortization 1,886 1,867 1,672 1,783 7,208 1,823 1,810 1,872 1,999 7,504
Impairments (3 ) 2 (89 ) 764 674 2 2 2 (18 ) (12 )
Dry hole costs and leasehold impairments 6 1 - 37 44 7 97 32 204 340
Accretion on discounted liabilities 62 63 61 56 242 61 61 60 68 250
Deferred taxes 203 364 328 451 1,346 373 495 726 492 2,086
Undistributed equity earnings 81 236 (59 ) 188 446 220 371 (22 ) 373 942
Gain (loss) on dispositions (233 ) (59 ) (2 ) (192 ) (486 ) (817 ) (262 ) 40 (38 ) (1,077 )
Gain on investment in Cenovus Energy (308 ) (418 ) (17 ) (297 ) (1,040 ) (251 ) - - - (251 )
Other (581 ) (107 ) (178 ) 78 (788 ) (152 ) 115 (1 ) 124 86
Net working capital changes (15 ) 211 702 373 1,271 (1,957 ) 80 1,504 139 (234 )
Net Cash Provided by Operating Activities 2,080 4,251 4,797 5,868 16,996 5,068 7,914 8,740 6,592 28,314
Cash Flows from Investing Activities
Capital expenditures and investments (1,200 ) (1,265 ) (1,302 ) (1,557 ) (5,324 ) (3,161 ) (1,968 ) (2,497 ) (2,533 ) (10,159 )
Working capital changes associated with investing activities 61 (59 ) 77 55 134 363 133 46 (22 ) 520
Acquisition of businesses, net of cash acquired 382 - - (8,672 ) (8,290 ) 37 - - (97 ) (60 )
Proceeds from asset dispositions (17 ) 177 632 861 1,653 2,332 619 403 117 3,471
Net (purchases) sales of investments (499 ) 1,801 1,544 245 3,091 (263 ) (841 ) (1,131 ) (394 ) (2,629 )
Collection of advances/loans—related parties 52 - 53 - 105 55 - 59 - 114
Other 6 80 (472 ) 473 87 26 (34 ) 15 (5 ) 2
Net Cash (Used in) Provided by Investing Activities (1,215 ) 734 532 (8,595 ) (8,544 ) (611 ) (2,091 ) (3,105 ) (2,934 ) (8,741 )
Cash Flows from Financing Activities
Net repayment of debt (26 ) (18 ) (319 ) (142 ) (505 ) (1,067 ) (1,865 ) (45 ) (393 ) (3,370 )
Issuance of company common stock (28 ) 3 52 118 145 271 79 (5 ) 17 362
Repurchase of company common stock (375 ) (606 ) (1,243 ) (1,399 ) (3,623 ) (1,425 ) (2,300 ) (2,799 ) (2,746 ) (9,270 )
Dividends paid (588 ) (583 ) (579 ) (609 ) (2,359 ) (864 ) (988 ) (1,484 ) (2,390 ) (5,726 )
Other 2 1 3 1 7 (52 ) (4 ) 3 4 (49 )
Net Cash Used in Financing Activities (1,015 ) (1,203 ) (2,086 ) (2,031 ) (6,335 ) (3,137 ) (5,078 ) (4,330 ) (5,508 ) (18,053 )
Effect of Exchange Rate Changes (2 ) 11 (12 ) (31 ) (34 ) 21 (258 ) (215 ) 228 (224 )
Net Change in Cash, Cash Equivalents and Restricted Cash (152 ) 3,793 3,231 (4,789 ) 2,083 1,341 487 1,090 (1,622 ) 1,296
Cash, cash equivalents and restricted cash at beginning of period 3,315 3,163 6,956 10,187 3,315 5,398 6,739 7,226 8,316 5,398
Cash, Cash Equivalents and Restricted Cash at End of Period 3,163 6,956 10,187 5,398 5,398 6,739 7,226 8,316 6,694 6,694
CAPITAL EXPENDITURES AND INVESTMENTS
Alaska 235 228 235 284 982 253 218 269 351 1,091
Lower 48 718 762 770 879 3,129 1,062 1,285 1,773 1,510 5,630
Canada 33 35 61 74 203 122 125 135 148 530
Europe, Middle East and North Africa 121 136 128 149 534 172 192 167 467 998
Asia Pacific 76 72 87 155 390 1,538 126 127 89 1,880
Other International 6 12 15 - 33 - - - - -
Corporate and Other 11 20 6 16 53 14 22 26 (32 ) 30
Total Capital Expenditures and Investments 1,200 1,265 1,302 1,557 5,324 3,161 1,968 2,497 2,533 10,159

All values are in US Dollars.

2022
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
TOTAL SEGMENTS
Production
Total (MBOED) 1,527 1,588 1,544 1,608 1,567 1,747 1,692 1,754 1,758 1,738
Crude Oil (MBD)
Consolidated operations 804 836 802 824 816 903 857 882 899 885
Equity affiliates 14 13 13 12 13 12 14 13 13 13
Total 818 849 815 836 829 915 871 895 912 898
Over (under) lifting of crude oil (MBD) (28 ) 27 42 (13 ) 7 28 27 4 9 17
NGL (MBD)
Consolidated operations 105 120 123 186 134 216 236 263 261 244
Equity affiliates 8 8 7 8 8 7 8 8 8 8
Total 113 128 130 194 142 223 244 271 269 252
Bitumen (MBD)
Consolidated operations 70 68 69 68 69 67 59 69 69 66
Total 70 68 69 68 69 67 59 69 69 66
Natural Gas (MMCFD)
Consolidated operations 2,074 2,209 2,144 2,009 2,109 2,126 1,872 1,899 1,862 1,939
Equity affiliates 1,081 1,051 1,033 1,049 1,053 1,127 1,235 1,214 1,184 1,191
Total 3,155 3,260 3,177 3,058 3,162 3,253 3,107 3,113 3,046 3,130
Industry Prices
Crude Oil (/BBL)
WTI 57.84 66.07 70.56 77.19 67.92 94.29 108.41 91.56 82.64 94.23
WCS 45.32 54.60 56.99 62.58 54.87 79.76 95.71 71.88 56.72 76.02
Brent dated 60.90 68.83 73.47 79.73 70.73 101.40 113.78 100.85 88.71 101.19
JCC (/BBL) 43.77 55.88 67.00 73.13 59.94 80.43 86.09 110.97 113.23 97.68
Natural Gas (/MMBTU)
Henry Hub first of month 2.71 2.83 4.02 5.84 3.85 4.96 7.17 8.20 6.26 6.65
Average Realized Prices
Total (/BBL) 45.36 50.03 56.92 65.56 54.63 76.99 88.57 83.07 71.05 79.82
Crude Oil (/BBL)
Consolidated operations 57.18 65.54 70.39 76.69 67.61 94.79 111.49 97.60 85.61 97.23
Equity affiliates 59.73 64.10 73.44 81.53 69.45 97.20 111.97 94.58 83.64 97.31
Total 57.22 65.51 70.43 76.76 67.64 94.82 111.50 97.56 85.58 97.23
NGL (/BBL)
Consolidated operations 24.36 25.62 33.28 36.41 31.04 40.95 42.20 34.83 26.46 35.67
Equity affiliates 48.89 44.12 56.70 67.77 54.16 67.04 72.44 55.51 50.61 61.22
Total 26.44 26.87 34.79 37.72 32.45 41.80 43.26 35.47 27.21 36.50
Bitumen (/BBL)
Consolidated operations 30.78 37.60 41.19 40.74 37.52 65.86 75.42 49.77 34.47 55.56
Total 30.78 37.60 41.19 40.74 37.52 65.86 75.42 49.77 34.47 55.56
Natural Gas (/MCF)
Consolidated operations 4.89 4.25 5.93 9.13 6.00 8.81 10.19 14.14 9.26 10.56
Equity affiliates 3.54 3.97 5.95 7.80 5.31 8.86 10.08 11.37 12.19 10.67
Total 4.42 4.16 5.94 8.66 5.77 8.83 10.15 13.04 10.44 10.60
Exploration Expenses ( Millions)
Dry holes 6 - - 28 34 1 87 25 138 251
Leasehold impairment - 1 - 9 10 6 10 7 66 89
Total noncash expenses 6 1 - 37 44 7 97 32 204 340
Other (G&A, G&G and lease rentals) 78 56 65 101 300 62 46 57 59 224
Total exploration expenses 84 57 65 138 344 69 143 89 263 564
U.S. exploration expenses 50 35 32 99 216 54 40 42 86 222
International exploration expenses 34 22 33 39 128 15 103 47 177 342
DD&A ( Millions)
Alaska 317 262 201 217 997 226 234 232 247 939
Lower 48 1,000 1,017 988 1,070 4,075 1,168 1,192 1,198 1,307 4,865
Canada 126 93 85 82 386 102 98 96 106 402
Europe, Middle East and North Africa 219 234 217 216 886 192 157 196 191 736
Asia Pacific 211 240 167 170 788 124 118 140 136 518
Other International - - - - - - - - - -
Corporate and Other 13 21 14 28 76 11 11 10 12 44
Total DD&A 1,886 1,867 1,672 1,783 7,208 1,823 1,810 1,872 1,999 7,504

All values are in US Dollars.

2021 2022
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 190 184 163 180 178 182 177 171 179 177
Lower 48 416 454 457 457 447 538 528 537 534 534
Canada 11 9 8 7 8 6 5 4 8 6
Norway 80 81 82 80 81 76 56 77 74 71
Libya 36 39 35 38 37 37 34 30 44 36
Europe, Middle East and North Africa 116 120 117 118 118 113 90 107 118 107
China 31 27 27 28 28 30 29 31 31 30
Indonesia 2 2 2 2 2 1 - - - -
Malaysia 38 40 28 32 35 33 28 32 29 31
Asia Pacific 71 69 57 62 65 64 57 63 60 61
Total consolidated operations 804 836 802 824 816 903 857 882 899 885
Equity affiliates 14 13 13 12 13 12 14 13 13 13
Total 818 849 815 836 829 915 871 895 912 898
NGL (MBD)
Consolidated operations
Alaska 17 15 13 17 16 18 16 15 17 17
Lower 48 79 97 101 162 110 191 214 241 236 221
Canada 4 4 4 3 4 3 3 3 4 3
Norway 5 4 5 4 4 4 3 4 4 3
Europe, Middle East and North Africa 5 4 5 4 4 4 3 4 4 3
Total consolidated operations 105 120 123 186 134 216 236 263 261 244
Equity affiliates 8 8 7 8 8 7 8 8 8 8
Total 113 128 130 194 142 223 244 271 269 252
Bitumen (MBD)
Canada 70 68 69 68 69 67 59 69 69 66
Total 70 68 69 68 69 67 59 69 69 66
Natural Gas (MMCFD)
Consolidated operations
Alaska 8 11 11 33 16 35 34 29 39 34
Lower 48 1,319 1,459 1,389 1,195 1,340 1,426 1,411 1,410 1,362 1,402
Canada 91 84 73 70 80 63 66 49 64 61
Norway 295 284 291 323 298 308 284 312 317 306
Libya 14 13 12 21 15 23 22 19 26 22
Europe, Middle East and North Africa 309 297 303 344 313 331 306 331 343 328
Indonesia 290 290 299 296 294 194 - - - 48
Malaysia 57 68 69 71 66 77 55 80 54 66
Asia Pacific 347 358 368 367 360 271 55 80 54 114
Total consolidated operations 2,074 2,209 2,144 2,009 2,109 2,126 1,872 1,899 1,862 1,939
Equity affiliates 1,081 1,051 1,033 1,049 1,053 1,127 1,235 1,214 1,184 1,191
Total 3,155 3,260 3,177 3,058 3,162 3,253 3,107 3,113 3,046 3,130
Total (MBOED)
Consolidated operations
Alaska 208 201 178 203 197 206 199 191 203 200
Lower 48 715 794 790 818 780 967 977 1,013 997 989
Canada 100 95 93 90 94 86 78 84 92 85
Norway 134 132 135 138 135 131 106 133 131 125
Libya 39 41 37 41 40 41 38 33 48 40
Europe, Middle East and North Africa 173 173 172 179 175 172 144 166 179 165
China 31 27 27 28 28 30 29 31 31 30
Indonesia 50 50 52 51 51 33 - - - 8
Malaysia 48 52 40 44 46 46 37 45 38 42
Asia Pacific 129 129 119 123 125 109 66 76 69 80
Total consolidated operations 1,325 1,392 1,352 1,413 1,371 1,540 1,464 1,530 1,540 1,519
Equity affiliates 202 196 192 195 196 207 228 224 218 219
Total 1,527 1,588 1,544 1,608 1,567 1,747 1,692 1,754 1,758 1,738
2022
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 59.56 67.87 72.55 79.61 69.87 95.54 114.77 103.90 91.34 101.72
Lower 48** 55.68 64.13 68.59 74.82 66.12 93.55 109.14 93.19 82.28 94.46
Canada 47.41 56.87 58.99 66.62 56.38 82.13 94.79 71.11 73.62 79.94
Norway 56.72 66.10 72.36 78.51 68.94 92.18 116.93 104.10 89.96 99.88
Libya 59.78 66.88 72.57 77.64 69.06 99.92 113.03 98.55 87.39 97.85
Europe, Middle East and North Africa 57.75 66.34 72.43 78.27 68.97 94.68 115.61 102.70 88.86 99.20
China 58.27 65.63 74.39 79.61 69.39 105.75 115.00 101.95 88.21 101.87
Indonesia 53.79 57.16 61.35 73.35 61.92 77.09 - - - 77.09
Malaysia 62.27 69.77 75.65 80.87 71.59 104.88 119.26 115.94 98.90 109.42
Asia Pacific 60.36 67.72 74.66 80.05 70.36 104.84 117.14 108.99 93.29 105.52
Total consolidated operations 57.18 65.54 70.39 76.69 67.61 94.79 111.49 97.60 85.61 97.23
Equity affiliates 59.73 64.10 73.44 81.53 69.45 97.20 111.97 94.58 83.64 97.31
Total 57.22 65.51 70.43 76.76 67.64 94.82 111.50 97.56 85.58 97.23
NGL (/BBL)
Consolidated operations
Lower 48 23.99 24.62 32.87 35.99 30.63 40.42 42.00 34.59 26.21 35.36
Canada 25.32 27.14 33.47 39.68 31.18 41.83 44.93 29.62 34.08 37.70
Norway 34.70 39.49 50.32 57.91 43.97 58.67 68.00 51.67 40.72 54.52
Europe, Middle East and North Africa 34.70 39.49 50.32 57.91 43.97 58.67 68.00 51.67 40.72 54.52
Total consolidated operations 24.36 25.62 33.28 36.41 31.04 40.95 42.20 34.83 26.46 35.67
Equity affiliates 48.89 44.12 56.70 67.77 54.16 67.04 72.44 55.51 50.61 61.22
Total 26.44 26.87 34.79 37.72 32.45 41.80 43.26 35.47 27.21 36.50
Bitumen (/BBL)
Canada* 30.78 37.60 41.19 40.74 37.52 65.86 75.42 49.77 34.47 55.56
Total 30.78 37.60 41.19 40.74 37.52 65.86 75.42 49.77 34.47 55.56
Natural Gas (/MCF)
Consolidated operations
Alaska 2.23 4.53 2.63 2.22 2.81 3.92 3.34 4.38 3.24 3.64
Lower 48** 4.56 3.27 4.63 5.25 4.38 4.63 6.85 7.36 4.82 5.92
Canada 2.37 2.26 2.45 3.16 2.54 3.25 4.47 2.40 4.04 3.62
Norway 6.15 7.36 12.28 27.06 13.75 30.93 30.06 50.57 29.74 35.33
Libya 2.71 3.02 4.17 4.58 3.73 5.13 5.61 7.46 8.00 6.59
Europe, Middle East and North Africa 5.99 7.17 11.96 25.71 13.27 29.18 28.32 48.10 28.13 33.39
Indonesia 6.57 7.19 7.49 8.23 7.38 8.26 - - - 8.26
Malaysia 2.35 2.61 3.02 3.59 2.93 3.85 4.17 4.18 4.24 4.09
Asia Pacific 5.88 6.32 6.66 7.33 6.56 7.01 4.17 4.18 4.24 5.84
Total consolidated operations 4.89 4.25 5.93 9.13 6.00 8.81 10.19 14.14 9.26 10.56
Equity affiliates 3.54 3.97 5.95 7.80 5.31 8.86 10.08 11.37 12.19 10.67
Total 4.42 4.16 5.94 8.66 5.77 8.83 10.15 13.04 10.44 10.60
*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.
**Average sales prices, including the impact of hedges settling per initial contract terms in the first<br> quarter of 2021 assumed in our Concho acquisition, were 65.19 per barrel for crude oil and 4.33 per mcf for natural gas for the year ended December 31, 2021. As of March 31, 2021, we had settled all oil and gas hedging positions<br> acquired from Concho.

All values are in US Dollars.

2022
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) (121 ) 66 (213 ) 58 (210 ) 546 (349 ) (239 ) (288 ) (330 )
Detail of Earnings (Loss) ( Millions)
Net interest expense (270 ) (181 ) (176 ) (174 ) (801 ) (218 ) (164 ) (125 ) (93 ) (600 )
Corporate G&A expenses (129 ) (65 ) (57 ) (66 ) (317 ) (79 ) (16 ) (62 ) (87 ) (244 )
Technology* 41 (4 ) (6 ) (6 ) 25 58 (9 ) (8 ) (9 ) 32
Other 237 316 26 304 883 785 (160 ) (44 ) (99 ) 482
Total (121 ) 66 (213 ) 58 (210 ) 546 (349 ) (239 ) (288 ) (330 )
*Includes investment in new technologies or businesses outside of our normal scope of operations and licensing<br> revenues.
Before-Tax Net Interest Expense ( Millions)
Interest expense (241 ) (235 ) (236 ) (234 ) (946 ) (227 ) (224 ) (215 ) (197 ) (863 )
Capitalized interest 15 15 17 15 62 10 13 16 19 58
Interest revenue 6 4 5 7 22 6 29 60 90 185
Total (220 ) (216 ) (214 ) (212 ) (862 ) (211 ) (182 ) (139 ) (88 ) (620 )
Debt
Total debt ( Millions) 20,027 20,010 19,668 19,934 19,934 18,746 16,971 16,961 16,643 16,643
Debt-to-capital ratio (%) 32 % 31 % 31 % 31 % 31 % 28 % 25 % 26 % 26 % 26 %
Equity ( Millions) 43,155 44,276 44,115 45,406 45,406 49,218 50,202 49,079 48,003 48,003

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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