Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2022-08-04 For: 2022-08-04
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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):   August 4, 2022

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. ☐

1

Item 2.02 Results of Operations and Financial Condition.

On August 4, 2022 ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended June 30, 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 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 August 4, 2022.
99.2 — Supplemental financial information.
104 — Cover Page Interactive Data File (formatted as Inline XBRL and filed herewith).

2

SIGNATURES

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

CONOCOPHILLIPS
/s/ Kontessa S. Haynes-Welsh
Kontessa S. Haynes-Welsh
Chief Accounting Officer
August 4, 2022

3

Exhibit 99.1

ConocoPhillips Reports Second-Quarter 2022 Results; Announces Increase in Planned 2022 Return of Capital to $15 Billion and Declares Quarterly Dividend and Variable Return of Cash Distribution

HOUSTON--(BUSINESS WIRE)--August 4, 2022--ConocoPhillips (NYSE: COP) today reported second-quarter 2022 earnings of $5.1 billion, or $3.96 per share, compared with second-quarter 2021 earnings of $2.1 billion, or $1.55 per share. Excluding special items, second-quarter 2022 adjusted earnings were $5.1 billion, or $3.91 per share, compared with second-quarter 2021 adjusted earnings of $1.7 billion, or $1.27 per share. Special items for the current quarter were comprised of gains on asset sales including contingent payments related to prior dispositions, partially offset by a loss on debt extinguishment and a Norway tax reform-related adjustment.

In addition, ConocoPhillips today announced a $5 billion increase in planned 2022 return of capital to $15 billion. The company declared both a third-quarter ordinary dividend of 46 cents per share and a fourth-quarter variable return of cash (VROC) payment of $1.40 per share.

“The second quarter delivered strong financial results and presented outstanding opportunities to accelerate progress on our Triple Mandate to reliably and responsibly deliver oil and gas production to meet energy transition pathway demand, deliver competitive returns on and of capital for our shareholders, and achieve our net-zero operational emissions ambition,” said Ryan Lance, chairman and chief executive officer. “We’re increasing our targeted 2022 return to shareholders by an additional $5 billion while taking steps to meet transition demand with recent announcements to expand our global LNG portfolio. We also progressed our ESG priorities by committing to an important initiative to verifiably measure and report methane emissions and published both our 2021 Sustainability and Human Capital Management reports to share how we’re meeting those priorities.”

Second-Quarter Highlights and Recent Announcements

  • Announced a $5 billion increase in expected 2022 return of capital to shareholders to a total of $15 billion.
  • Distributed $3.3 billion to shareholders through a three-tier framework, including $1.0 billion in cash through the ordinary dividend and VROC and $2.3 billion through share repurchases.
  • Expanded global LNG portfolio through participation in QatarEnergy’s North Field East LNG project and announced a non-binding Heads of Agreement with Sempra Infrastructure with opportunities to participate in large-scale LNG projects, an LNG offtake of approximately 5 million tonnes per annum and related carbon capture activities.
  • As part of an ongoing commitment to ESG excellence and leadership, ConocoPhillips joined the Oil and Gas Methane Partnership (OGMP) 2.0 initiative.
  • Generated cash provided by operating activities of $7.9 billion and cash from operations (CFO) of $7.8 billion.
  • Delivered second-quarter production of 1,692 MBOED while successfully completing planned maintenance turnarounds.
  • Continued progress toward the company’s $5 billion debt reduction target through $1.8 billion of debt retirements during the quarter, now totaling $3 billion since announcing the target.
  • Completed $0.4 billion of noncore asset sales during the quarter.
  • Ended the quarter with cash and short-term investments of $8.5 billion.

Quarterly Dividend and Variable Return of Cash

ConocoPhillips announced a quarterly ordinary dividend of 46 cents per share, payable Sept. 1, 2022, to stockholders of record at the close of business on Aug. 16, 2022. In addition, the company announced a fourth-quarter VROC of $1.40 per share, payable Oct. 14, 2022, to stockholders of record at the close of business on Sept. 29, 2022.

Second-Quarter Review

Production for the second quarter of 2022 was 1,692 thousand barrels of oil equivalent per day (MBOED), an increase of 104 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, second-quarter 2022 production decreased by 69 MBOED or 4% 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 planned and unplanned downtime.

In the Lower 48, production averaged 977 MBOED, including 634 MBOED from the Permian, 233 MBOED from the Eagle Ford and 91 MBOED from the Bakken. In Canada, drilling and completion activities continued at Montney while construction progressed on the second phase of the company’s processing facility. Turnarounds were successfully completed in Europe and Canada. In Qatar, the company signed an agreement with QatarEnergy to form a new joint venture that will participate with a 12.5% interest in the North Field East LNG project. Subject to regulatory approvals, ConocoPhillips will hold a 25% interest in this joint venture.

Earnings and adjusted earnings increased from second-quarter 2021 primarily due to higher realized prices. The company’s total average realized price was $88.57 per barrel of oil equivalent (BOE), 77% higher than the $50.03 per BOE realized in the second quarter of 2021, as production remains unhedged and thus realizes the full impact of changes in marker prices.

For the quarter, cash provided by operating activities was $7.9 billion. Excluding a $0.1 billion change in operating working capital, ConocoPhillips generated CFO of $7.8 billion. Dispositions generated $0.6 billion from the sale of Lower 48 noncore assets and contingent payments received. The company funded $2.0 billion of capital expenditures and investments, paid $1.9 billion to reduce total debt, distributed $1.0 billion in ordinary dividends and VROC and repurchased $2.3 billion of shares.

Six-Month Review

ConocoPhillips’ six-month 2022 earnings were $10.9 billion, or $8.36 per share, compared with six-month 2021 earnings of $3.1 billion, or $2.31 per share. Six-month 2022 adjusted earnings were $9.4 billion, or $7.18 per share, compared with six-month 2021 adjusted earnings of $2.6 billion, or $1.97 per share.

Production for the first six months of 2022 was 1,720 MBOED, an increase of 162 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 53 MBOED or 3% 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 planned and unplanned downtime.

The company’s total realized price during this period was $82.70 per BOE, 73% higher than the $47.79 per BOE realized in the first six months of 2021, reflecting higher marker prices.

In the first half of 2022, cash provided by operating activities was $13.0 billion. Excluding a $1.9 billion change in working capital, ConocoPhillips generated CFO of $14.9 billion. Dispositions generated $3.0 billion, including $1.4 billion from sale of Cenovus Energy (CVE) shares, with the proceeds from CVE sales applied to share repurchases. The company funded $5.1 billion of capital expenditures and investments, comprised of $3.7 billion in operating capital and $1.4 billion to acquire an additional 10% interest in Australia Pacific LNG. In addition, the company paid $1.9 billion in ordinary dividends and VROC, repurchased $3.7 billion of shares and paid $2.9 billion to reduce total debt.

Outlook

Third-quarter 2022 production is expected to be 1.70 to 1.76 million barrels of oil equivalent per day (MMBOED), reflecting the impacts of planned seasonal turnarounds primarily in Alaska and the Asia-Pacific region. The company’s full-year production is expected to be approximately 1.74 MMBOED reflecting uncertainty in Libya and modest updates across the portfolio.

The company updated its 2022 adjusted operating cost guidance to $7.5 billion versus the prior guidance of $7.3 billion, reflecting commodity price-related impacts. Full-year guidance for adjusted corporate segment net loss has been lowered to $0.9 billion from $1.0 billion primarily due to lower net interest expense. Full-year guidance for depreciation, depletion and amortization has decreased to $7.6 billion. Capital guidance remains unchanged.

ConocoPhillips will host a conference call today at 12:00 p.m. Eastern time to discuss this announcement. To listen to the call and view related presentation materials and supplemental information, go to www.conocophillips.com/investor.

--- # # # ---

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 9,400 employees at June 30, 2022. Production averaged 1,720 MBOED for the six months ended June 30, 2022, and proved reserves were 6.1 BBOE as of Dec. 31, 2021. 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, 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 the acquisition of assets from Shell (the “Shell Acquisition”) or any other announced or any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related 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; the ability to successfully integrate the assets from the Shell Acquisition or achieve the anticipated benefits from the transaction; unanticipated difficulties or expenditures relating to the Shell Acquisition; 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, cash from operations (CFO), adjusted operating costs and adjusted corporate segment net loss.

The company believes that the non-GAAP measure adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss 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 the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

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

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

Other Terms – This news release also contains the term pro forma underlying production. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of June 30, 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. The company believes that underlying production is useful to investors to compare production reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies. Return of capital 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
2Q21 2022 YTD 2021 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 $ 5,145 3.96 2,091 1.55 10,904 8.36 3,073 2.31
Adjustments:
Net gain on asset sales ) 57 (197 ) (0.15 ) (68 ) 16 (52 ) (0.04 ) (1,017 ) 110 (907 ) (0.70 ) (268 ) 22 (246 ) (0.19 )
(Gain) loss on debt extinguishment and exchange fees (13 ) 70 0.05 - - - - (44 ) 52 8 0.01 - - - -
Tax adjustments 58 58 0.04 - - - - - (407 ) (407 ) (0.32 ) - 75 75 0.06
Transaction and restructuring expenses (4 ) 10 0.01 23 (5 ) 18 0.01 28 (8 ) 20 0.02 314 (53 ) 261 0.20
(Gain) loss on CVE shares - - - (418 ) - (418 ) (0.30 ) (251 ) - (251 ) (0.20 ) (726 ) - (726 ) (0.55 )
Pension settlement expense - - - 42 (9 ) 33 0.02 - - - - 42 (9 ) 33 0.02
Pending claims and settlements - - - 48 (10 ) 38 0.03 - - - - 48 (10 ) 38 0.03
(Gain) loss on FX derivative - - - 8 (2 ) 6 - 10 (2 ) 8 0.01 12 (3 ) 9 0.01
Net loss on accelerated settlement of Concho hedging program - - - - - - - - - - - 132 (31 ) 101 0.08
Adjusted earnings / (loss) $ 5,086 3.91 1,716 1.27 9,375 7.18 2,618 1.97
The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which<br> the discrete item resides.

All values are in US Dollars.

ConocoPhillips
Table 2: Reconciliation of reported production to pro forma underlying production
In MBOED, Except as Indicated
2Q22 2Q21 2022 YTD 2021 YTD
Total Reported ConocoPhillips Production 1,692 1,588 1,720 1,558
Closed Dispositions^1^ - (77 ) (22 ) (77 )
Closed Acquisitions ^2^ - 210 - 205
Total Pro Forma Underlying Production 1,692 1,721 1,698 1,686
Estimated Downtime from Winter Storm Uri^3^ - - - 25
Estimated Uplift from 2 to 3 stream conversion^4^ (40 ) - (40 ) -
^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. 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
Table 3: Reconciliation of net cash provided by operating activities to cash from operations
Millions, Except as Indicated
2022 YTD
Net Cash Provided by Operating Activities 12,982
Adjustments:
Net operating working capital changes (1,877 )
Cash from operations 14,859

All values are in US Dollars.

ConocoPhillips
Table 4: Reconciliation of production and operating expenses to adjusted operating costs
Millions, Except as Indicated
Production and operating expenses
Adjustments:
Selling, general and administrative (G&A) expenses
Exploration G&A, G&G and lease rentals
Operating Costs
Adjustments to exclude special items:
Transaction and restructuring expenses
Adjusted Operating Costs

All values are in US Dollars.

ConocoPhillips
Table 5: Reconciliation of adjusted corporate segment net loss
Millions, Except as Indicated
Corporate and Other earnings
Adjustments to exclude special items:
(Gain) loss on CVE shares
(Gain) loss on FX derivative
Debt extinguishment and exchange fees
Income tax on special items
Adjusted corporate segment net loss

All values are in US Dollars.

Contacts

Dennis Nuss (media)

            281-293-1149 

            *dennis.nuss@conocophillips.com*

Investor Relations

            281-293-5000 

            *investor.relations@conocophillips.com*

Exhibit 99.2
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 38,923
Equity in earnings of affiliates 122 139 239 332 832 426 524 950
Gain on dispositions 233 59 2 192 486 817 262 1,079
Other income 378 457 49 319 1,203 286 42 328
Total Revenues and Other Income 10,559 10,211 11,616 15,963 48,349 19,291 21,989 41,280
Costs and Expenses
Purchased commodities 4,483 2,998 4,179 6,498 18,158 6,751 9,234 15,985
Production and operating expenses 1,383 1,379 1,389 1,543 5,694 1,581 1,741 3,322
Selling, general and administrative expenses 311 117 128 163 719 187 96 283
Exploration expenses 84 57 65 138 344 69 143 212
Depreciation, depletion and amortization 1,886 1,867 1,672 1,783 7,208 1,823 1,810 3,633
Impairments (3 ) 2 (89 ) 764 674 2 2 4
Taxes other than income taxes 370 381 403 480 1,634 814 1,020 1,834
Accretion on discounted liabilities 62 63 61 56 242 61 61 122
Interest and debt expense 226 220 219 219 884 217 211 428
Foreign currency transactions (gain) loss 19 10 (10 ) (41 ) (22 ) 24 (70 ) (46 )
Other expenses 24 37 17 24 102 (136 ) 86 (50 )
Total Costs and Expenses 8,845 7,131 8,034 11,627 35,637 11,393 14,334 25,727
Income before income taxes 1,714 3,080 3,582 4,336 12,712 7,898 7,655 15,553
Income tax provision 732 989 1,203 1,709 4,633 2,139 2,510 4,649
Net Income 982 2,091 2,379 2,627 8,079 5,759 5,145 10,904
Net Income Per Share of Common Stock (dollars)
Basic 0.75 1.55 1.78 1.99 6.09 4.41 3.98 8.39
Diluted 0.75 1.55 1.78 1.98 6.07 4.39 3.96 8.36
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 1,295,827
Diluted 1,302,691 1,353,201 1,336,379 1,320,829 1,328,151 1,307,404 1,295,844 1,301,126
*Ending Common Shares Outstanding is 1,273,033 as of June 30, 2022, compared with 1,293,450 as of March 31,<br> 2022.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 217 480 517 574 1,788 802 983 1,785
Lower 48 609 1,502 2,094 2,117 6,322 3,547 4,456 8,003
Canada 16 135 205 252 608 381 418 799
Europe, Middle East and North Africa 511 697 878 1,624 3,710 1,774 1,533 3,307
Asia Pacific 432 289 377 (162 ) 936 1,310 637 1,947
Other International (5 ) (6 ) (140 ) (9 ) (160 ) - - -
Corporate and Other (66 ) (17 ) (349 ) (60 ) (492 ) 84 (372 ) (288 )
Consolidated 1,714 3,080 3,582 4,336 12,712 7,898 7,655 15,553
EFFECTIVE INCOME TAX RATES
Alaska* 26.8 % 22.8 % 21.6 % 21.4 % 22.5 % 27.1 % 30.1 % 28.8 %
Lower 48 23.2 % 21.7 % 22.1 % 21.7 % 22.0 % 21.4 % 19.6 % 20.4 %
Canada 33.7 % 24.9 % 24.4 % 24.2 % 24.7 % 23.7 % 24.3 % 24.0 %
Europe, Middle East and North Africa 70.1 % 70.3 % 72.5 % 65.2 % 68.5 % 76.8 % 74.9 % 75.9 %
Asia Pacific 26.6 % 39.4 % 31.9 % -82.9 % 51.6 % 13.3 % 17.7 % 14.7 %
Other International 28.0 % 7.6 % 30.4 % 91.6 % 33.0 % -137.8 % 43.0 % 14.9 %
Corporate and Other -85.1 % 496.6 % 38.9 % 198.2 % 57.3 % -546.2 % 6.2 % 168.6 %
Consolidated 42.7 % 32.1 % 33.6 % 39.4 % 36.4 % 27.1 % 32.8 % 29.9 %
*Alaska including taxes other than income taxes. 50.3 % 38.8 % 36.0 % 37.9 % 39.3 % 47.8 % 52.1 % 50.2 %

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 1,271
Lower 48 468 1,175 1,631 1,658 4,932 2,790 3,581 6,371
Canada 10 102 155 191 458 291 316 607
Europe, Middle East and North Africa 153 207 241 566 1,167 412 385 797
Asia Pacific 317 175 257 (296 ) 453 1,136 525 1,661
Other International (4 ) (5 ) (97 ) (1 ) (107 ) - - -
Corporate and Other (121 ) 66 (213 ) 58 (210 ) 546 (349 ) 197
Consolidated 982 2,091 2,379 2,627 8,079 5,759 5,145 10,904
SPECIAL ITEMS
Alaska (20 ) (2 ) (1 ) 3 (20 ) 23 - 23
Lower 48 (236 ) (10 ) 56 (109 ) (299 ) 16 69 85
Canada (3 ) 52 77 97 223 176 118 294
Europe, Middle East and North Africa - - (5 ) - (5 ) - (58 ) (58 )
Asia Pacific 199 - - (688 ) (489 ) 534 - 534
Other International - - (105 ) (3 ) (108 ) - - -
Corporate and Other 140 335 (15 ) 317 777 721 (70 ) 651
Consolidated 80 375 7 (383 ) 79 1,470 59 1,529
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 179 373 406 448 1,406 561 687 1,248
Lower 48 704 1,185 1,575 1,767 5,231 2,774 3,512 6,286
Canada 13 50 78 94 235 115 198 313
Europe, Middle East and North Africa 153 207 246 566 1,172 412 443 855
Asia Pacific 118 175 257 392 942 602 525 1,127
Other International (4 ) (5 ) 8 2 1 - - -
Corporate and Other (261 ) (269 ) (198 ) (259 ) (987 ) (175 ) (279 ) (454 )
Consolidated 902 1,716 2,372 3,010 8,000 4,289 5,086 9,375
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 26.4 % 22.7 % 21.7 % 22.4 % 22.8 % 30.0 % 30.1 % 30.1 %
Lower 48 23.3 % 21.7 % 22.0 % 21.8 % 22.1 % 22.1 % 19.6 % 20.7 %
Canada 28.3 % 26.2 % 25.7 % 25.3 % 25.8 % 24.4 % 25.1 % 24.8 %
Europe, Middle East and North Africa 70.2 % 70.3 % 72.7 % 65.2 % 68.6 % 76.8 % 71.1 % 74.1 %
Asia Pacific 49.3 % 39.4 % 31.9 % 25.5 % 33.9 % 22.4 % 17.7 % 20.3 %
Other International 28.0 % 7.6 % -7.1 % 143.6 % 107.8 % -137.8 % 43.0 % 14.9 %
Corporate and Other 8.1 % 18.7 % 38.9 % 25.1 % 23.1 % 38.1 % 3.4 % 20.6 %
Consolidated 44.8 % 36.8 % 34.2 % 36.8 % 37.1 % 36.8 % 32.2 % 34.4 %

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 ) - (23 )
Total (20 ) (2 ) (1 ) 3 (20 ) 23 - 23
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 - - - - - - 101 101
Subtotal before income taxes (307 ) (13 ) 74 (142 ) (388 ) (14 ) 87 73
Income tax provision (benefit)^2^ (71 ) (3 ) 18 (33 ) (89 ) (30 ) 18 (12 )
Total (236 ) (10 ) 56 (109 ) (299 ) 16 69 85
Canada
Gain (loss) on asset sales - 68 100 126 294 229 153 382
Transaction and restructuring expenses (3 ) - - - (3 ) - - -
Subtotal before income taxes (3 ) 68 100 126 291 229 153 382
Income tax provision (benefit) - 16 23 29 68 53 35 88
Total (3 ) 52 77 97 223 176 118 294
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 ) - - -
Transaction and restructuring expenses (1 ) - - - (1 ) - - -
Subtotal before income taxes 199 - - (688 ) (489 ) 534 - 534
Income tax provision (benefit) - - - - - - - -
Total 199 - - (688 ) (489 ) 534 - 534
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) - - (42 ) (1 ) (43 ) - - -
Total - - (105 ) (3 ) (108 ) - - -
Corporate and Other
Pension settlement expense - (42 ) (28 ) (29 ) (99 ) - - -
Pending claims and settlements - (48 ) - - (48 ) - - -
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 ) 285
Income tax provision (benefit)^3^ 79 (23 ) (8 ) (32 ) 16 (353 ) (13 ) (366 )
Total 140 335 (15 ) 317 777 721 (70 ) 651
Total Company 80 375 7 (383 ) 79 1,470 59 1,529
^1^Includes a tax adjustment in Q1 2022 related to the closure of an audit.
^2^Includes a tax adjustment in Q1 2022 related to the closure of an audit.
^3^Includes deferred tax adjustment related to foreign tax credits in Q1 2021; Q4 2021 and<br> Q1 2022 tax adjustment related to Indonesia disposition; Q1 2022 tax adjustments including the closure of an audit.
^4^Includes Norway tax reform for Q2 2022.
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 6,909
Short-term investments 4,104 2,251 678 446 446 730 1,272 1,272
Accounts and notes receivable 4,339 4,401 5,336 6,543 6,543 7,807 8,081 8,081
Accounts and notes receivable—related parties 142 123 129 127 127 72 72 72
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 1,234
Prepaid expenses and other current assets 536 849 1,746 1,581 1,581 1,389 1,292 1,292
Total Current Assets 14,614 17,172 20,181 16,050 16,050 17,586 18,860 18,860
Investments and long-term receivables 8,286 8,013 8,058 7,113 7,113 8,309 8,203 8,203
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 64,008
Other assets 2,464 2,442 2,376 2,587 2,587 2,771 2,622 2,622
Total Assets 83,693 85,403 87,304 90,661 90,661 93,308 93,693 93,693
Liabilities
Accounts payable 3,779 3,591 4,101 5,002 5,002 4,875 5,845 5,845
Accounts payable—related parties 22 22 30 23 23 22 28 28
Short-term debt 689 1,205 920 1,200 1,200 1,160 676 676
Accrued income and other taxes 959 1,406 2,082 2,862 2,862 3,162 2,759 2,759
Employee benefit obligations 567 571 691 755 755 446 529 529
Other accruals 1,168 1,355 2,625 2,179 2,179 1,959 2,379 2,379
Total Current Liabilities 7,184 8,150 10,449 12,021 12,021 11,624 12,216 12,216
Long-term debt 19,338 18,805 18,748 18,734 18,734 17,586 16,295 16,295
Asset retirement obligations and accrued environmental costs 5,782 5,819 5,721 5,754 5,754 5,815 5,737 5,737
Deferred income taxes 4,982 5,331 5,630 6,179 6,179 6,556 6,694 6,694
Employee benefit obligations 1,530 1,297 1,162 1,153 1,153 1,085 1,080 1,080
Other liabilities and deferred credits 1,722 1,725 1,479 1,414 1,414 1,424 1,469 1,469
Total Liabilities 40,538 41,127 43,189 45,255 45,255 44,090 43,491 43,491
Equity
Common stock issued
Par value 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 61,045
Treasury stock (47,672 ) (48,278 ) (49,521 ) (50,920 ) (50,920 ) (52,344 ) (54,644 ) (54,644 )
Accumulated other comprehensive loss (5,080 ) (4,920 ) (5,123 ) (4,950 ) (4,950 ) (4,808 ) (5,313 ) (5,313 )
Retained earnings 35,608 37,116 38,307 40,674 40,674 45,442 49,093 49,093
Total Equity 43,155 44,276 44,115 45,406 45,406 49,218 50,202 50,202
Total Liabilities and Equity 83,693 85,403 87,304 90,661 90,661 93,308 93,693 93,693

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 (loss) 982 2,091 2,379 2,627 8,079 5,759 5,145 10,904
Depreciation, depletion and amortization 1,886 1,867 1,672 1,783 7,208 1,823 1,810 3,633
Impairments (3 ) 2 (89 ) 764 674 2 2 4
Dry hole costs and leasehold impairments 6 1 - 37 44 7 97 104
Accretion on discounted liabilities 62 63 61 56 242 61 61 122
Deferred taxes 203 364 328 451 1,346 373 495 868
Undistributed equity earnings 81 236 (59 ) 188 446 220 371 591
Gain on dispositions (233 ) (59 ) (2 ) (192 ) (486 ) (817 ) (262 ) (1,079 )
Gain on investment in Cenovus Energy (308 ) (418 ) (17 ) (297 ) (1,040 ) (251 ) - (251 )
Other (581 ) (107 ) (178 ) 78 (788 ) (152 ) 115 (37 )
Net working capital changes (15 ) 211 702 373 1,271 (1,957 ) 80 (1,877 )
Net Cash Provided by Operating Activities 2,080 4,251 4,797 5,868 16,996 5,068 7,914 12,982
Cash Flows from Investing Activities
Capital expenditures and investments (1,200 ) (1,265 ) (1,302 ) (1,557 ) (5,324 ) (3,161 ) (1,968 ) (5,129 )
Working capital changes associated with investing activities 61 (59 ) 77 55 134 363 133 496
Acquisition of businesses, net of cash acquired 382 - - (8,672 ) (8,290 ) 37 - 37
Proceeds from asset dispositions (17 ) 177 632 861 1,653 2,332 619 2,951
Net sales (purchases) of investments (499 ) 1,801 1,544 245 3,091 (263 ) (841 ) (1,104 )
Collection of advances/loans—related parties 52 - 53 - 105 55 - 55
Other 6 80 (472 ) 473 87 26 (34 ) (8 )
Net Cash Provided by (Used in) Investing Activities (1,215 ) 734 532 (8,595 ) (8,544 ) (611 ) (2,091 ) (2,702 )
Cash Flows from Financing Activities
Net issuance (repayment) of debt (26 ) (18 ) (319 ) (142 ) (505 ) (1,067 ) (1,865 ) (2,932 )
Issuance of company common stock (28 ) 3 52 118 145 271 79 350
Repurchase of company common stock (375 ) (606 ) (1,243 ) (1,399 ) (3,623 ) (1,425 ) (2,300 ) (3,725 )
Dividends paid (588 ) (583 ) (579 ) (609 ) (2,359 ) (864 ) (988 ) (1,852 )
Other 2 1 3 1 7 (52 ) (4 ) (56 )
Net Cash Used in Financing Activities (1,015 ) (1,203 ) (2,086 ) (2,031 ) (6,335 ) (3,137 ) (5,078 ) (8,215 )
Effect of Exchange Rate Changes (2 ) 11 (12 ) (31 ) (34 ) 21 (258 ) (237 )
Net Change in Cash, Cash Equivalents and Restricted Cash (152 ) 3,793 3,231 (4,789 ) 2,083 1,341 487 1,828
Cash, cash equivalents and restricted cash at beginning of period 3,315 3,163 6,956 10,187 3,315 5,398 6,739 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 7,226
CAPITAL EXPENDITURES AND INVESTMENTS
Alaska 235 228 235 284 982 253 218 471
Lower 48 718 762 770 879 3,129 1,062 1,285 2,347
Canada 33 35 61 74 203 122 125 247
Europe, Middle East and North Africa 121 136 128 149 534 172 192 364
Asia Pacific 76 72 87 155 390 1,538 126 1,664
Other International 6 12 15 - 33 - - -
Corporate and Other 11 20 6 16 53 14 22 36
Total Capital Expenditures and Investments 1,200 1,265 1,302 1,557 5,324 3,161 1,968 5,129

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 1,720
Crude Oil (MBD)
Consolidated operations 804 836 802 824 816 903 857 880
Equity affiliates 14 13 13 12 13 12 14 13
Total 818 849 815 836 829 915 871 893
Over (under) lifting of crude oil (MBD) (28 ) 27 42 (13 ) 7 28 27 27
NGL (MBD)
Consolidated operations 105 120 123 186 134 216 236 227
Equity affiliates 8 8 7 8 8 7 8 7
Total 113 128 130 194 142 223 244 234
Bitumen (MBD)
Consolidated operations 70 68 69 68 69 67 59 63
Equity affiliates - - - - - - - -
Total 70 68 69 68 69 67 59 63
Natural Gas (MMCFD)
Consolidated operations 2,074 2,209 2,144 2,009 2,109 2,126 1,872 1,999
Equity affiliates 1,081 1,051 1,033 1,049 1,053 1,127 1,235 1,181
Total 3,155 3,260 3,177 3,058 3,162 3,253 3,107 3,180
Industry Prices
Crude Oil (/BBL)
WTI 57.84 66.07 70.56 77.19 67.92 94.29 108.41 101.35
WCS 45.32 54.60 56.99 62.58 54.87 79.76 95.71 87.73
Brent dated 60.90 68.83 73.47 79.73 70.73 101.40 113.78 107.59
JCC (/BBL) 43.77 55.88 67.00 73.13 59.94 80.43 86.09 83.26
Natural Gas (/MMBTU)
Henry Hub first of month 2.71 2.83 4.02 5.84 3.85 4.96 7.17 6.06
Average Realized Prices
Total (/BBL) 45.36 50.03 56.92 65.56 54.63 76.99 88.57 82.70
Crude Oil (/BBL)
Consolidated operations 57.18 65.54 70.39 76.69 67.61 94.79 111.49 102.97
Equity affiliates 59.73 64.10 73.44 81.53 69.45 97.20 111.97 105.20
Total 57.22 65.51 70.43 76.76 67.64 94.82 111.50 103.00
NGL (/BBL)
Consolidated operations 24.36 25.62 33.28 36.41 31.04 40.95 42.20 41.61
Equity affiliates 48.89 44.12 56.70 67.77 54.16 67.04 72.44 69.99
Total 26.44 26.87 34.79 37.72 32.45 41.80 43.26 42.57
Bitumen (/BBL)
Consolidated operations 30.78 37.60 41.19 40.74 37.52 65.86 75.42 70.25
Equity affiliates - - - - - - - -
Total 30.78 37.60 41.19 40.74 37.52 65.86 75.42 70.25
Natural Gas (/MCF)
Consolidated operations 4.89 4.25 5.93 9.13 6.00 8.81 10.19 9.46
Equity affiliates 3.54 3.97 5.95 7.80 5.31 8.86 10.08 9.51
Total 4.42 4.16 5.94 8.66 5.77 8.83 10.15 9.48
Exploration Expenses ( Millions)
Dry holes 6 - - 28 34 1 87 88
Leasehold impairment - 1 - 9 10 6 10 16
Total noncash expenses 6 1 - 37 44 7 97 104
Other (G&A, G&G and lease rentals) 78 56 65 101 300 62 46 108
Total exploration expenses 84 57 65 138 344 69 143 212
U.S. exploration expenses 50 35 32 99 216 54 40 94
International exploration expenses 34 22 33 39 128 15 103 118
DD&A ( Millions)
Alaska 317 262 201 217 997 226 234 460
Lower 48 1,000 1,017 988 1,070 4,075 1,168 1,192 2,360
Canada 126 93 85 82 386 102 98 200
Europe, Middle East and North Africa 219 234 217 216 886 192 157 349
Asia Pacific 211 240 167 170 788 124 118 242
Other International - - - - - - - -
Corporate and Other 13 21 14 28 76 11 11 22
Total DD&A 1,886 1,867 1,672 1,783 7,208 1,823 1,810 3,633

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 190 184 163 180 178 182 177 180
Lower 48 416 454 457 457 447 538 528 533
Canada 11 9 8 7 8 6 5 6
Norway 80 81 82 80 81 76 56 66
Libya 36 39 35 38 37 37 34 35
Europe, Middle East and North Africa 116 120 117 118 118 113 90 101
China 31 27 27 28 28 30 29 29
Indonesia 2 2 2 2 2 1 - 1
Malaysia 38 40 28 32 35 33 28 30
Asia Pacific 71 69 57 62 65 64 57 60
Total consolidated operations 804 836 802 824 816 903 857 880
Equity affiliates 14 13 13 12 13 12 14 13
Total 818 849 815 836 829 915 871 893
NGL (MBD)
Consolidated operations
Alaska 17 15 13 17 16 18 16 17
Lower 48 79 97 101 162 110 191 214 203
Canada 4 4 4 3 4 3 3 3
Norway 5 4 5 4 4 4 3 4
Europe, Middle East and North Africa 5 4 5 4 4 4 3 4
Total consolidated operations 105 120 123 186 134 216 236 227
Equity affiliates 8 8 7 8 8 7 8 7
Total 113 128 130 194 142 223 244 234
Bitumen (MBD)
Canada 70 68 69 68 69 67 59 63
Total 70 68 69 68 69 67 59 63
Natural Gas (MMCFD)
Consolidated operations
Alaska 8 11 11 33 16 35 34 34
Lower 48 1,319 1,459 1,389 1,195 1,340 1,426 1,411 1,419
Canada 91 84 73 70 80 63 66 65
Norway 295 284 291 323 298 308 284 296
Libya 14 13 12 21 15 23 22 22
Europe, Middle East and North Africa 309 297 303 344 313 331 306 318
Indonesia 290 290 299 296 294 194 - 97
Malaysia 57 68 69 71 66 77 55 66
Asia Pacific 347 358 368 367 360 271 55 163
Total consolidated operations 2,074 2,209 2,144 2,009 2,109 2,126 1,872 1,999
Equity affiliates 1,081 1,051 1,033 1,049 1,053 1,127 1,235 1,181
Total 3,155 3,260 3,177 3,058 3,162 3,253 3,107 3,180
Total (MBOED)
Consolidated operations
Alaska 208 201 178 203 197 206 199 203
Lower 48 715 794 790 818 780 967 977 972
Canada 100 95 93 90 94 86 78 83
Norway 134 132 135 138 135 131 106 119
Libya 39 41 37 41 40 41 38 39
Europe, Middle East and North Africa 173 173 172 179 175 172 144 158
China 31 27 27 28 28 30 29 29
Indonesia 50 50 52 51 51 33 - 17
Malaysia 48 52 40 44 46 46 37 41
Asia Pacific 129 129 119 123 125 109 66 87
Total consolidated operations 1,325 1,392 1,352 1,413 1,371 1,540 1,464 1,503
Equity affiliates 202 196 192 195 196 207 228 217
Total 1,527 1,588 1,544 1,608 1,567 1,747 1,692 1,720
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 95.54 114.77 105.26
Lower 48** 55.68 64.13 68.59 74.82 66.12 93.55 109.14 101.34
Canada 47.41 56.87 58.99 66.62 56.38 82.13 94.79 88.04
Norway 56.72 66.10 72.36 78.51 68.94 92.18 116.93 102.15
Libya 59.78 66.88 72.57 77.64 69.06 99.92 113.03 105.39
Europe, Middle East and North Africa 57.75 66.34 72.43 78.27 68.97 94.68 115.61 103.21
China 58.27 65.63 74.39 79.61 69.39 105.75 115.00 110.42
Indonesia 53.79 57.16 61.35 73.35 61.92 77.09 - 77.09
Malaysia 62.27 69.77 75.65 80.87 71.59 104.88 119.26 111.89
Asia Pacific 60.36 67.72 74.66 80.05 70.36 104.84 117.14 110.89
Total consolidated operations 57.18 65.54 70.39 76.69 67.61 94.79 111.49 102.97
Equity affiliates 59.73 64.10 73.44 81.53 69.45 97.20 111.97 105.20
Total 57.22 65.51 70.43 76.76 67.64 94.82 111.50 103.00
NGL (/BBL)
Consolidated operations
Lower 48 23.99 24.62 32.87 35.99 30.63 40.42 42.00 41.26
Canada 25.32 27.14 33.47 39.68 31.18 41.83 44.93 43.44
Norway 34.70 39.49 50.32 57.91 43.97 58.67 68.00 60.49
Europe, Middle East and North Africa 34.70 39.49 50.32 57.91 43.97 58.67 68.00 60.49
Total consolidated operations 24.36 25.62 33.28 36.41 31.04 40.95 42.20 41.61
Equity affiliates 48.89 44.12 56.70 67.77 54.16 67.04 72.44 69.99
Total 26.44 26.87 34.79 37.72 32.45 41.80 43.26 42.57
Bitumen (/BBL)
Canada* 30.78 37.60 41.19 40.74 37.52 65.86 75.42 70.25
Total 30.78 37.60 41.19 40.74 37.52 65.86 75.42 70.25
Natural Gas (/MCF)
Consolidated operations
Alaska 2.23 4.53 2.63 2.22 2.81 3.92 3.34 3.66
Lower 48** 4.56 3.27 4.63 5.25 4.38 4.63 6.85 5.74
Canada 2.37 2.26 2.45 3.16 2.54 3.25 4.47 3.88
Norway 6.15 7.36 12.28 27.06 13.75 30.93 30.06 30.52
Libya 2.71 3.02 4.17 4.58 3.73 5.13 5.61 5.36
Europe, Middle East and North Africa 5.99 7.17 11.96 25.71 13.27 29.18 28.32 28.77
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 3.98
Asia Pacific 5.88 6.32 6.66 7.33 6.56 7.01 4.17 6.53
Total consolidated operations 4.89 4.25 5.93 9.13 6.00 8.81 10.19 9.46
Equity affiliates 3.54 3.97 5.95 7.80 5.31 8.86 10.08 9.51
Total 4.42 4.16 5.94 8.66 5.77 8.83 10.15 9.48
*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<br> first 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 ) 197
Detail of Earnings (Loss) ( Millions)
Net interest expense (270 ) (181 ) (176 ) (174 ) (801 ) (218 ) (164 ) (382 )
Corporate G&A expenses (129 ) (65 ) (57 ) (66 ) (317 ) (79 ) (16 ) (95 )
Technology* 41 (4 ) (6 ) (6 ) 25 58 (9 ) 49
Other 237 316 26 304 883 785 (160 ) 625
Total (121 ) 66 (213 ) 58 (210 ) 546 (349 ) 197
*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 (241 ) (235 ) (236 ) (234 ) (946 ) (227 ) (224 ) (451 )
Capitalized interest 15 15 17 15 62 10 13 23
Interest revenue 6 4 5 7 22 6 29 35
Total (220 ) (216 ) (214 ) (212 ) (862 ) (211 ) (182 ) (393 )
Debt
Total debt ( Millions) 20,027 20,010 19,668 19,934 19,934 18,746 16,971 16,971
Debt-to-capital ratio (%) 32 % 31 % 31 % 31 % 31 % 28 % 25 % 25 %
Equity ( Millions) 43,155 44,276 44,115 45,406 45,406 49,218 50,202 50,202

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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