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): October 29, 2003
ConocoPhillips
(Exact name of registrant as specified in its charter)
Delaware 000-49987 01-0562944
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
600 North Dairy Ashford
Houston, Texas 77079
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (281) 293-1000
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 -- Press release issued by ConocoPhillips on October 29, 2003.
99.2 -- Financial and operational tables.
99.3 -- Supplemental financial information.
Item 12. Results of Operations and Financial Condition
On October 29, 2003, ConocoPhillips issued a press release announcing
the company's financial and operating results for the quarter ended September
30, 2003. 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 Exhibits 99.2 and 99.3 to this report and
incorporated by reference herein.
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/ Rand C. Berney
-------------------------------------------
Rand C. Berney
Vice President and Controller
October 29, 2003
3
EXHIBIT INDEX
Exhibit
No. Description
99.1 -- Press release issued by ConocoPhillips on October 29, 2003.
99.2 -- Financial and operational tables.
99.3 -- Supplemental financial information.
4
Exhibit 99.1
ConocoPhillips Reports Third Quarter Net Income of $1.3 Billion;
Strong Refining & Marketing Results
HOUSTON--(BUSINESS WIRE)--Oct. 29, 2003--ConocoPhillips
(NYSE:COP):
Earnings at a glance
Third Quarter Nine Months
----------------------------- ----------------------------
2003 2002 2003 2002
-------------- -------------- -------------- -------------
Income
(loss) from
continuing
operations $1,249 million $(74) million $3,607 million $140 million
Income
(loss) from
discontinued
operations $57 (42) $201 (7)
Cumulative
effect of
changes in
accounting
principles $ - - $(113) -
Net income
(loss) $1,306 (116) $3,695 133
- ----------------------------------------------------------------------
Diluted income
per share
Income (loss)
from
continuing
operations $1.82 $(0.15) $5.28 $0.34
Net income
(loss) $1.90 $(0.24) $5.40 $0.32
- ----------------------------------------------------------------------
Revenues $26.5 billion $14.7 billion $79.1 billion $33.7 billion
- ----------------------------------------------------------------------
ConocoPhillips (NYSE:COP) today reported third quarter net income
of $1,306 million, or $1.90 per share, compared with a net loss of
$116 million, or 24 cents per share, for the same quarter in 2002,
which included only one month of the combined company. Total revenues
were $26.5 billion, versus $14.7 billion a year ago. Income from
continuing operations for the third quarter was $1,249 million, or
$1.82 per share, compared with a loss of $74 million, or 15 cents per
share, for the same period a year ago.
"Our performance in the third quarter was solid," said Jim Mulva,
president and chief executive officer. "We operated as expected and
benefited from market conditions in both upstream and downstream.
Upstream production was 1.56 million barrels-of-oil-equivalent (BOE)
per day during the quarter. The downstream business generated a
significant portion of our total earnings by maintaining high
utilization rates, allowing us to realize the benefit of strong
refining margins.
"Net cash from operating activities for the first nine months of
this year totaled $7.4 billion. This, along with cash from asset
sales, enabled us to fund $4.4 billion in capital expenditures, reduce
debt by $3.7 billion, and improve our debt-to-capital ratio to 36
percent.
"We have completed asset sales of $2.2 billion since the merger,
and we expect to complete another estimated $1.3 billion by the end of
the year. This will meet our announced divestiture program target of
$3 billion to $4 billion by the end of 2004. During the third quarter,
we made significant progress with the announced agreement to sell The
Circle K Corporation and the completion of the sale of our New York
and New England retail marketing assets."
For the first nine months of 2003, net income was $3,695 million,
or $5.40 per share, versus $133 million, or 32 cents per share, for
the corresponding period in 2002. Income from continuing operations
was $3,607 million, or $5.28 per share, compared with $140 million, or
34 cents per share, for the same period a year ago. The company's
return on capital employed remained strong and, after adjusting for
purchase to pooling accounting, is comparable with the largest
companies in the industry. Total revenues were $79.1 billion, versus
$33.7 billion a year ago.
In the third quarter, the company elected to adopt Financial
Accounting Standards Board Interpretation No. 46, "Consolidation of
Variable Interest Entities," for synthetic leases and other financing
structures, with retroactive application to Jan. 1, 2003. As a result,
all prior 2003 periods reflect the application of this accounting
change.
The ConocoPhillips merger was consummated on Aug. 30, 2002, and
used purchase accounting to recognize the fair value of the Conoco
assets and liabilities. While the results of the third quarter and
first nine months of 2003 reflect the operations of the combined
company, the third quarter of 2002 includes two months' activity for
Phillips and one month's activity for ConocoPhillips. Similarly,
results for the first nine months of 2002 include eight months'
activity for Phillips and one month of activity for ConocoPhillips,
restated for discontinued operations. All asset dispositions required
by the Federal Trade Commission have now been completed.
The results of ConocoPhillips' business segments follow.
Exploration & Production (E&P)
Third quarter financial results: E&P income from continuing
operations in the third quarter was $967 million, down from $1,077
million in the second quarter of 2003 and up from $460 million in the
third quarter of 2002. The decrease from the second quarter was
primarily the result of impacts from one-time benefits associated with
international tax legislation changes in the second quarter, decreased
production due to normal seasonal declines and scheduled maintenance
activity, and the impact of asset dispositions. These decreases were
partially offset by higher realized crude oil prices and gains from
asset sales. Improved results from the third quarter of 2002 were due
to higher realized crude oil and natural gas prices and increased
production resulting from a full quarter of production from the Conoco
assets.
ConocoPhillips' daily production for the quarter was lower than
that of the second quarter, averaging 1.56 million BOE per day,
including Canadian Syncrude. Decreased production was primarily the
result of seasonal declines and scheduled maintenance activity in
Alaska and the North Sea, as well as asset dispositions in the Lower
48. Disposition proceeds of approximately $400 million during the
third quarter bring total E&P asset sales for 2003 to approximately
$750 million. These dispositions, together with those expected to
close in the fourth quarter, represent a production rate decrease of
approximately 50,000 BOE per day.
ConocoPhillips' third quarter 2003 average worldwide crude oil
sales price was $27.00 per barrel, up from $25.19 in the second
quarter of 2003. The company's U.S. Lower 48 and worldwide natural gas
prices averaged $4.56 and $3.80 per thousand cubic feet, respectively,
compared with $4.72 and $3.93 in the second quarter of 2003.
Nine months financial results: E&P income from continuing
operations for the first nine months of 2003 was $3,169 million, up
from $941 million in 2002, primarily due to additional volumes from
the Conoco operations, higher realized worldwide crude oil and natural
gas prices, and one-time benefits associated with international tax
legislation changes.
ConocoPhillips' average worldwide crude oil price was $27.55 per
barrel for the first nine months of 2003, compared with $23.43 for the
same period in 2002. The company's U.S. Lower 48 and worldwide natural
gas prices averaged $4.92 and $4.08 per thousand cubic feet,
respectively, versus $2.42 and $2.37 in 2002.
Midstream
Third quarter financial results: Midstream income from continuing
operations was $31 million, up from $25 million in the second quarter
of 2003 and up from $11 million in the third quarter of 2002. The
increase from the second quarter was due primarily to improved
margins, partially offset by a second quarter gain on asset sales in
equity earnings from Duke Energy Field Services, LLC (DEFS). The
increase over the third quarter of 2002 was primarily due to higher
natural gas liquids prices and a full quarter of operations from the
Conoco assets.
Nine months financial results: Midstream operating results
increased to $87 million, from $35 million in 2002. Contributing to
the increase were higher equity earnings from DEFS and the addition of
the Conoco midstream operations.
Refining and Marketing (R&M)
Third quarter financial results: R&M income from continuing
operations was $485 million, improved from $321 million in the
previous quarter and up from $57 million in the third quarter of 2002.
The improvement in third quarter R&M earnings, compared with the
second quarter of 2003, was primarily driven by higher refining
margins (net of narrowing light-heavy differentials) throughout the
United States. Additionally, earnings benefited from lower utility and
turnaround costs. Increased refining results were partially offset by
lower U.S. and international marketing margins, as well as an
estimated $30 million impact related to decreased utilization at the
Ponca City refinery. The improved results over the third quarter of
2002 were attributable to higher refining and marketing margins, a
full quarter of operations from the Conoco assets, and business
improvements, which included the benefits from progress made on
implementing synergy initiatives.
The company's crude oil capacity utilization rate averaged 95
percent, compared with 96 percent last quarter. After-tax turnaround
costs were $13 million and $26 million in the third quarter and second
quarter of 2003, respectively.
Nine months financial results: R&M income from continuing
operations for the first nine months of 2003 increased to $1,195
million, compared with $38 million for the first nine months of 2002.
Increased refining and marketing margins, as well as the addition of
the Conoco assets, contributed to the increase.
Chemicals
Third quarter financial results: The Chemicals segment, which
reflects the company's 50 percent interest in Chevron Phillips
Chemical Company LLC, reported income from continuing operations of $7
million, compared with $12 million in the second quarter of 2003 and
$3 million in the third quarter of 2002. Decreases from the second
quarter were the result of lower margins, partially offset by higher
sales volumes. The increase from the third quarter of 2002 primarily
reflects third quarter 2002 losses from asset retirements and higher
margins in the third quarter of 2003, particularly in aromatics and
styrenics.
Nine months financial results: During the first nine months of
2003, the Chemicals segment had a loss from continuing operations of
$4 million, compared with $1 million for the same period a year ago.
The increased loss was primarily due to slightly lower margins, as
well as higher employee severance accruals, partially offset by third
quarter 2002 losses from asset retirements.
Emerging Businesses
The Emerging Businesses segment had a loss from continuing
operations of $18 million in the third quarter of 2003, compared with
losses of $23 million in the second quarter of 2003 and $262 million
in the third quarter of 2002. The improvement from the second quarter
was primarily attributable to reduced costs associated with a
gas-to-liquids plant. The decrease in costs from the third quarter of
2002 primarily resulted from a 2002 write-off of purchased in-process
research and development costs.
Corporate and Other
Third quarter after-tax Corporate expenses from continuing
operations were $223 million, compared with $317 million in the
previous quarter and $343 million in the third quarter of 2002.
Contributing to the decrease during the third quarter from the second
quarter of 2003 were reduced merger-related expenses, from $115
million to $41 million. The decrease from the third quarter of 2002
also primarily resulted from lower merger-related expenses, partially
offset by a full quarter of expenses associated with the Conoco
assets.
The company's balance sheet debt level at the end of the third
quarter was $18.9 billion. This reflects debt reductions of $1.4
billion during the third quarter, as well as accounting changes that
increased balance sheet debt by $2.9 billion. These accounting changes
reflect the adoption of Financial Accounting Standards Board (FASB)
Interpretation No. 46 (FIN 46), "Consolidation of Variable Interest
Entities," for synthetic leases and other financing structures, as
permitted by FASB Staff Position No. FIN 46-6, and the adoption of
FASB Statement No. 150 (SFAS 150), "Accounting for Certain Financial
Instruments with Characteristics of Both Liabilities and Equity." The
third quarter implementation of FIN 46 was retroactive to Jan. 1,
2003, while SFAS 150 was adopted and applied as of July 1, 2003. The
FASB continues to issue guidance related to variable interest
entities, which the company will monitor in connection with its
implementation of FIN 46 and SFAS 150.
The company's third quarter effective tax rate of 46 percent was
higher than that of the second quarter primarily due to the one-time
impact in the second quarter of tax law changes in certain
international jurisdictions, partially offset by a higher proportion
of income in lower-tax-rate jurisdictions.
Discontinued Operations
Third quarter 2003 earnings from discontinued operations were $57
million, compared with $91 million in the second quarter. The decrease
was primarily related to lower marketing margins and asset
dispositions.
Outlook
Mr. Mulva concluded:
"During the quarter, we celebrated our first anniversary as
ConocoPhillips. We remain committed to deliver superior returns to our
shareholders through continued strong earnings, debt reduction, cost
and capital discipline, and a competitive dividend. We recently
announced an increase of 7.5 percent to our dividend rate.
"Upstream, we continue to strengthen our portfolio through legacy
project advancement and planned asset dispositions, which are
progressing as expected. In addition, we are continuing to pursue
expansion of our portfolio of worldwide natural gas opportunities in
places such as Qatar, Venezuela and Australia.
"Downstream, we are on track with our plan to rationalize a
substantial portion of our U.S. retail marketing assets. During the
fourth quarter, we expect higher turnaround activity and scheduled
maintenance than in the previous two quarters, and we anticipate crude
oil utilization rates to exceed 90 percent.
"These and the other plans we are implementing are designed to
achieve higher long-term returns on capital employed. We remain
committed to this objective and look forward to updating the
investment community on the status of our operating and investment
plans at our November security analyst meeting."
ConocoPhillips is an integrated petroleum company with interests
around the world. Headquartered in Houston, the company had
approximately 54,800 employees, $82 billion of assets, and $106
billion of annualized revenues as of Sept. 30, 2003. For more
information, go to www.conocophillips.com.
ConocoPhillips' quarterly conference call is scheduled for
noon Central today. To listen to the conference call and to
view related presentation materials, go to www.conocophillips.com
and click on the "Third Quarter Earnings" link.
For financial and operational tables, go to
www.conocophillips.com/news/nr/earnings/highlights/3q03earnings.html.
For detailed supplemental information, go to
www.conocophillips.com/news/nr/earnings/detail/3q03summary.xls.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR"
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This update contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements, such as "...we
expect higher turnaround activity and scheduled maintenance than in
the previous two quarters"; "we anticipate crude oil utilization rates
to exceed 90 percent"; and "these and the other plans we are
implementing are designed to achieve higher long-term returns on
capital employed," involve certain risks, uncertainties and
assumptions that are difficult to predict. Further, certain
forward-looking statements are based on assumptions as to future
events that may not prove to be accurate. Therefore, actual outcomes
and results may differ materially from what is expressed or forecast
in such forward-looking statements. Economic, business, competitive
and regulatory factors that may affect ConocoPhillips' business are
generally as set forth in ConocoPhillips' filings with the Securities
and Exchange Commission (SEC). ConocoPhillips is under no obligation
(and expressly disclaims any such obligation) to update or alter its
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
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. Production is
distinguished from oil and gas production because SEC regulations
define Syncrude as mining-related and not part of conventional oil and
natural gas reserves. We use certain terms in this release, such as
"including Canadian Syncrude" that the SEC's guidelines strictly
prohibit us from including in filings with the SEC. U.S. investors are
urged to consider closely the disclosure in the company's periodic
filings with the SEC, available from the company at 600 North Dairy
Ashford Road, Houston, Texas 77079. This information can also be
obtained from the SEC by calling 1-800-SEC-0330.
CONTACT: ConocoPhillips
Kristi DesJarlais, 281-293-4595 (media)
or
Clayton Reasor, 212-207-1996 (investors)
www.conocophillips.com
Exhibit 99.2
ConocoPhillips
Houston, Texas 77079
Preliminary
FINANCIAL HIGHLIGHTS
Millions of Dollars
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002** 2003 2002**
Revenues
Sales and other operating revenues* $26,105 14,557 78,366 33,402
Equity in earnings of affiliates 186 89 391 138
Other income 202 85 378 136
-------- -------- -------- --------
26,493 14,731 79,135 33,676
-------- -------- -------- --------
Costs and expenses
Purchased crude oil and products 16,815 9,904 50,848 22,697
Production and operating expenses 1,736 1,203 5,262 3,002
Selling, general and administrative expenses 551 795 1,601 1,266
Exploration expenses 132 85 390 315
Depreciation, depletion and amortization 858 548 2,574 1,339
Property impairments 18 8 192 26
Taxes other than income taxes* 3,807 1,733 10,853 3,624
Accretion on discounted liabilities 39 6 107 17
Interest and debt expense 190 134 647 347
Foreign currency transaction (gains)/losses 34 (6) 14 (11)
Minority interests and preferred dividend
requirements of capital trusts 3 9 16 34
-------- -------- -------- --------
24,183 14,419 72,504 32,656
-------- -------- -------- --------
Income from continuing operations before income
taxes and subsidiary equity transactions 2,310 312 6,631 1,020
Gain on subsidiary equity transactions - - 28 -
-------- -------- -------- --------
Income from continuing operations before income 2,310 312 6,659 1,020
taxes
Provision for income taxes 1,061 386 3,052 880
-------- -------- -------- --------
Income (loss) from continuing operations 1,249 (74) 3,607 140
Income (loss) from discontinued operations, net of
income taxes 57 (42) 201 (7)
-------- -------- -------- --------
Income (loss) before cumulative effect of
changes in accounting principles 1,306 (116) 3,808 133
Cumulative effect of changes in accounting
principles - - (113) -
-------- -------- -------- --------
Net income (Loss) $1,306 (116) 3,695 133
======== ======== ======== ========
Income (loss) per share of common stock
Basic
Continuing operations $1.84 (0.15) 5.30 0.34
Discontinued operations 0.08 (0.09) 0.30 (0.02)
Before cumulative effect of changes in accounting
principles 1.92 (0.24) 5.60 0.32
Cumulative effect of changes in accounting
principles - - (0.17) -
Net income (loss) $1.92 (0.24) 5.43 0.32
Diluted
Continuing operations $1.82 (0.15) 5.28 0.34
Discontinued operations 0.08 (0.09) 0.29 (0.02)
Before cumulative effect of changes in accounting
principles 1.90 (0.24) 5.57 0.32
Cumulative effect of changes in accounting
principles - - (0.17) -
Net income (loss) $1.90 (0.24) 5.40 0.32
Average common shares outstanding (in thousands)
Basic 680,689 480,701 680,089 416,293
Diluted 686,263 484,777 684,248 422,212
*Includes excise taxes on petroleum products sales: $3,580 1,560 10,115 3,143
**Restated for certain discontinued operations.
1-1
ConocoPhillips
Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
Millions of Dollars
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
INCOME/(LOSS) FROM CONTINUING OPERATIONS
BEFORE ACCOUNTING CHANGE
E&P
United States $546 306 1,741 741
International 421 154 1,428 200
-------- ----- -------- -----
Total E&P 967 460 3,169 941
-------- ----- -------- -----
Midstream 31 11 87 35
-------- ----- -------- -----
R&M
United States 416 44 939 25
International 69 13 256 13
-------- ----- -------- -----
Total R&M 485 57 1,195 38
-------- ----- -------- -----
Chemicals 7 3 (4) (1)
Emerging Businesses (18) (262) (75) (270)
Corporate and other (223) (343) (765) (603)
-------- ----- -------- -----
Consolidated $1,249 (74) 3,607 140
======== ===== ======== =====
CUMULATIVE EFFECT OF ACCOUNTING CHANGES
E&P
United States $- - 142 -
International - - (13) -
-------- ----- -------- -----
Total E&P - - 129 -
-------- ----- -------- -----
Midstream - - - -
-------- ----- -------- -----
R&M
United States - - (125) -
International - - - -
-------- ----- -------- -----
Total R&M - - (125) -
-------- ----- -------- -----
Chemicals - - - -
Emerging Businesses - - -
Corporate and other - - (117) -
-------- ----- -------- -----
Consolidated $- - (113) -
======== ===== ======== =====
INCOME (LOSS) FROM DISCONTINUED OPERATIONS
Corporate and other 57 (42) 201 (7)
SUMMARY OF NET INCOME/(LOSS)
E&P
United States $546 306 1,883 741
International 421 154 1,415 200
-------- ----- -------- -----
Total E&P 967 460 3,298 941
-------- ----- -------- -----
Midstream 31 11 87 35
-------- ----- -------- -----
R&M
United States 416 44 814 25
International 69 13 256 13
-------- ----- -------- -----
Total R&M 485 57 1,070 38
-------- ----- -------- -----
Chemicals 7 3 (4) (1)
Emerging Businesses (18) (262) (75) (270)
Corporate and other (166) (385) (681) (610)
-------- ----- -------- -----
Net income/(loss) $1,306 (116) 3,695 133
======== ===== ======== =====
1-2
ConocoPhillips
Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
INCOME/(LOSS) FROM CONTINUING
OPERATIONS
Effective tax rate % 45.9 %123.7 45.8 86.3
Millions of Dollars
FOREIGN CURRENCY GAINS/(LOSSES)
AFTER-TAX
E&P $(12) (6) (28) (11)
Midstream - - - -
R&M (7) 3 4 8
Chemicals - - - -
Emerging Businesses (1) - (1) -
Corporate and other 2 5 21 13
-------- ------ -------- ------
$(18) 2 (4) 10
======== ====== ======== ======
CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) from continuing operations $1,249 (74) 3,607 140
Depreciation, depletion and amortization 858 548 2,574 1,339
Property impairments 18 8 192 26
Dry hole costs and leasehold impairment 75 20 169 161
Accretion on discounted liabilities 39 6 107 17
In-process research and development - 246 - 246
Deferred taxes 36 (20) 289 45
Other (631) (62) (729) 58
Working capital changes 323 1,137 975 836
-------- ------ -------- ------
Net cash provided by continuing operations 1,967 1,809 7,184 2,868
Net cash provided by discontinued operations 74 68 174 118
-------- ------ -------- ------
Net cash provided by operating activities $2,041 1,877 7,358 2,986
======== ====== ======== ======
CAPITAL EXPENDITURES AND INVESTMENTS
E&P
United States $353 233 1,060 756
Foreign 756 482 2,228 1,177
-------- ------ -------- ------
1,109 715 3,288 1,933
Midstream 2 1 6 2
R&M 298 192 740 425
Chemicals - 10 - 29
Emerging Businesses 60 35 224 35
Corporate and other* 51 7 127 55
-------- ------ -------- ------
$1,520 960 4,385 2,479
======== ====== ======== ======
*Excludes discontinued operations
OTHER
At September At December 31,
30, 2003 2002
Total debt $18,887 19,766
Common stockholders' equity $32,965 29,517
1-3
ConocoPhillips
Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
BY SEGMENT
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
Thousands of Barrels Daily
E&P
Crude oil produced
United States
Alaska 314 310 327 334
Lower 48 51 38 56 34
---------- ----------- ----------- ----------
365 348 383 368
Norway 207 156 215 131
United Kingdom 67 35 79 24
Canada 29 14 31 5
Nigeria 36 29 38 26
China 25 12 25 12
Indonesia 16 6 18 2
Other 48 20 52 9
---------- ----------- ----------- ----------
Total consolidated 793 620 841 577
Equity affiliates 120 44 97 18
---------- ----------- ----------- ----------
Total Worldwide 913 664 938 595
========== =========== =========== ==========
Syncrude 22 8 19 3
========== =========== =========== ==========
Natural gas liquids produced
United States
Alaska* 19 21 22 24
Lower 48 20 9 20 4
---------- ----------- ----------- ----------
39 30 42 28
Norway 7 6 8 5
Canada 9 3 10 1
Other 2 4 4 4
---------- ----------- ----------- ----------
Total Worldwide 57 43 64 38
========== =========== =========== ==========
*Includes reinjected volumes sold lease-to-
lease. 13 13 14 14
Millions of Cubic Feet Daily
Natural gas produced*
United States
Alaska 180 183 177 171
Lower 48 1,271 922 1,306 782
---------- ----------- ----------- ----------
1,451 1,105 1,483 953
Norway 216 183 265 150
United Kingdom 853 349 935 238
Canada 448 172 436 72
Indonesia 275 68 248 23
Other 130 105 120 106
---------- ----------- ----------- ----------
Total consolidated 3,373 1,982 3,487 1,542
Equity affiliates 11 4 11 1
---------- ----------- ----------- ----------
Total Worldwide 3,384 1,986 3,498 1,543
========== =========== =========== ==========
*Represents quantities available for sale. Excludes gas equivalent of NGL shown
above.
Liquefied natural gas sales 121 128 114 120
1-4
ConocoPhillips
Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
E&P (continued)
Per Unit
Average sales prices
Crude oil (per barrel)
United States
Alaska $28.31 25.83 28.99 22.92
Lower 48 27.94 26.87 28.98 23.61
Total U.S. 28.26 25.94 28.99 22.98
International 28.05 27.00 28.22 24.55
Total consolidated 28.15 26.38 28.57 23.54
Equity affiliates 19.90 20.29 18.84 19.88
Total Worldwide 27.00 25.97 27.55 23.43
Natural gas-lease (per MCF)
United States
Alaska 1.33 1.58 1.71 1.81
Lower 48 4.56 2.65 4.92 2.42
Total U.S. 4.41 2.60 4.78 2.39
International 3.38 2.37 3.59 2.34
Total consolidated 3.80 2.49 4.07 2.37
Equity affiliates 4.12 1.78 4.61 1.78
Total Worldwide 3.80 2.49 4.08 2.37
Midstream
Thousands of Barrels Daily
Natural gas liquids extracted
Consolidated
United States 50 19 51 7
International 47 15 44 5
Equity affiliates
United States* 111 119 111 118
International 12 3 11 1
---------- ----------- ---------- -----------
220 156 217 131
========== =========== ========== ===========
*Represents 30.3 percent interest in Duke Energy Field Services, LLC
(DEFS)
Per Barrel
U.S. product prices
Weighted average NGL**
Consolidated $20.94 18.57 22.51 18.57
DEFS 20.67 16.32 21.91 14.91
**Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted
by natural-gas-liquids component and location mix.
1-5
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
Thousands of Barrels Daily
R&M
United States
Crude oil capacity 2,168 1,825 2,168 1,710
Crude oil runs 2,083 1,643 2,073 1,546
Refinery production 2,322 1,795 2,311 1,702
International*
Crude oil capacity 442 192 442 112
Crude oil runs 387 168 387 100
Refinery production 413 178 419 101
U.S. Petroleum products outside sales
Automotive gasoline 1,398 1,195 1,370 1,146
Distillates 580 449 590 437
Aviation fuels 197 219 176 189
Other products 497 350 499 363
---------- ----------- ---------- --------------------
2,672 2,213 2,635 2,135
International 441 201 439 102
---------- ----------- ---------- --------------------
3,113 2,414 3,074 2,237
========== =========== ========== ====================
Per Gallon
U.S. Average sales prices**
Automotive gasoline-wholesale $1.09 0.93 1.07 0.86
Automotive gasoline-retail 1.42 1.02 1.38 0.95
Distillates-wholesale 0.88 0.81 0.93 0.73
*Includes ConocoPhillips' share of equity affiliates.
**Excludes excise taxes.
1-6
Exhibit 99.3
ConocoPhillips
SUMMARY OF NET INCOME (LOSS) BY SEGMENT
Millions of Dollars
--------------------------------------------------------------------------------------------
2002 2003
--------------------------------------------------- --------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
----------------------------------------------- ------------------------------------------
Income (Loss) from Continuing Operations
Before Accounting Changes
U.S. E&P 155 280 306 415 1,156 678 517 546 1,741
International E&P (13) 59 154 393 593 447 560 421 1,428
- --------------------------------------------------------------------------------------- -----------------------------------------
Total E&P 142 339 460 808 1,749 1,125 1,077 967 3,169
- --------------------------------------------------------------------------------------- ------------------------------------------
Midstream 12 12 11 20 55 31 25 31 87
- ------------------------------------------------------------------------------------------- --------------------------------------
U.S. R&M (92) 73 44 113 138 275 248 416 939
International R&M 5 (5) 13 (8) 5 114 73 69 256
- ------------------------------------------------------------------------------------------- --------------------------------------
Total R&M (87) 68 57 105 143 389 321 485 1,195
- ------------------------------------------------------------------------------------------- --------------------------------------
Chemicals (11) 7 3 (13) (14) (23) 12 7 (4)
Emerging Businesses (5) (3) (262) (40) (310) (34) (23) (18) (75)
Corporate and Other (149) (111) (343) (322) (925) (225) (317) (223) (765)
- ------------------------------------------------------------------------------------------- --------------------------------------
Consolidated (98) 312 (74) 558 698 1,263 1,095 1,249 3,607
=========================================================================================== ======================================
Cumulative Effect of Accounting Changes
U.S. E&P - - - - - 142 - - 142
International E&P - - - - - (13) - - (13)
- ------------------------------------------------------------------------------------------- --------------------------------------
Total E&P - - - - - 129 - - 129
- ------------------------------------------------------------------------------------------- --------------------------------------
Midstream - - - - - - - - -
- ------------------------------------------------------------------------------------------- --------------------------------------
U.S. R&M - - - - - (125) - - (125)
International R&M - - - - - - - - -
- ------------------------------------------------------------------------------------------- --------------------------------------
Total R&M - - - - - (125) - - (125)
- ------------------------------------------------------------------------------------------- --------------------------------------
Chemicals - - - - - - - - -
Emerging Businesses - - - - - - - - -
Corporate and Other - - - - - (117) - - (117)
- ------------------------------------------------------------------------------------------- --------------------------------------
Consolidated - - - - - (113) - - (113)
========================================================================================= =======================================
Income (Loss) from Discontinued
Operations
Corporate and Other (4) 39 (42) (986) (993) 53 91 57 201
=========================================================================================== ======================================
Net Income (Loss)
U.S. E&P 155 280 306 415 1,156 820 517 546 1,883
International E&P (13) 59 154 393 593 434 560 421 1,415
- ------------------------------------------------------------------------------------------- --------------------------------------
Total E&P 142 339 460 808 1,749 1,254 1,077 967 3,298
- ------------------------------------------------------------------------------------------- --------------------------------------
Midstream 12 12 11 20 55 31 25 31 87
- ------------------------------------------------------------------------------------------- --------------------------------------
U.S. R&M (92) 73 44 113 138 150 248 416 814
International R&M 5 (5) 13 (8) 5 114 73 69 256
- ------------------------------------------------------------------------------------------- --------------------------------------
Total R&M (87) 68 57 105 143 264 321 485 1,070
- ------------------------------------------------------------------------------------------- --------------------------------------
Chemicals (11) 7 3 (13) (14) (23) 12 7 (4)
Emerging Businesses (5) (3) (262) (40) (310) (34) (23) (18) (75)
Corporate and Other (153) (72) (385) (1,308) (1,918) (289) (226) (166) (681)
- ------------------------------------------------------------------------------------------- --------------------------------------
Consolidated (102) 351 (116) (428) (295) 1,203 1,186 1,306 3,695
=========================================================================================== ======================================
Page 1 of 13
ConocoPhillips
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
Millions of Dollars
--------------------------------------------------------------
2002 2003
-------------------------------- -----------------------------
1st 2nd Qtr 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr
-------------------------------- -----------------------------
Income from Continuing Operations
Before Income Taxes
U.S. E&P 223 419 450 536 1,628 1,050 802 853 2,705
International E&P 167 260 555 949 1,931 1,260 967 1,029 3,256
- ------------------------------------------------------------------------------------------ -----------------------------
Total E&P 390 679 1,005 1,485 3,559 2,310 1,769 1,882 5,961
- ------------------------------------------------------------------------------------------ -----------------------------
Midstream 20 20 23 35 98 51 42 50 143
- ------------------------------------------------------------------------------------------ -----------------------------
U.S. R&M (140) 118 75 175 228 453 396 639 1,488
International R&M 5 (5) 19 (25) (6) 150 94 86 330
- ------------------------------------------------------------------------------------------ -----------------------------
Total R&M (135) 113 94 150 222 603 490 725 1,818
- ------------------------------------------------------------------------------------------ -----------------------------
Chemicals (18) 3 (1) (16) (32) (44) 15 10 (19)
Emerging Businesses (8) (5) (274) (62) (349) (51) (34) (29) (114)
Corporate and Other (198) (153) (535) (471)(1,357) (300) (502) (328) (1,130)
- ------------------------------------------------------------------------------------------ -----------------------------
Consolidated 51 657 312 1,121 2,141 2,569 1,780 2,310 6,659
========================================================================================== =============================
Income from Continuing Operations
Effective Tax Rates
U.S. E&P 30.5% 33.2% 32.0% 22.6% 29.0% 35.4% 35.5% 36.0% 35.6%
International E&P 107.8% 77.3% 72.3% 58.6% 69.3% 64.5% 42.1% 59.1% 56.1%
- ------------------------------------------------------------------------------------------ -----------------------------
Total E&P 63.6% 50.1% 54.2% 45.6% 50.9% 51.3% 39.1% 48.6% 46.8%
- ------------------------------------------------------------------------------------------ -----------------------------
Midstream 40.0% 40.0% 52.2% 42.9% 43.9% 39.2% 40.5% 38.0% 39.2%
- ------------------------------------------------------------------------------------------ -----------------------------
U.S. R&M 34.3% 38.1% 41.3% 35.4% 39.5% 39.3% 37.4% 34.9% 36.9%
International R&M 0.0% 0.0% 31.6% 68.0% 183.3% 24.0% 22.3% 19.8% 22.4%
- ------------------------------------------------------------------------------------------ -----------------------------
Total R&M 35.6% 39.8% 39.4% 30.0% 35.6% 35.5% 34.5% 33.1% 34.3%
- ------------------------------------------------------------------------------------------ -----------------------------
Chemicals 38.9%-133.3%400.0% 18.8% 56.3% 47.7% 20.0% 30.0% 78.9%
Emerging Businesses 37.5% 40.0% 4.4% 35.5% 11.2% 33.3% 32.4% 37.9% 34.2%
Corporate and Other 24.7% 27.5% 35.9% 31.6% 31.8% 25.0% 36.9% 32.0% 32.3%
- ------------------------------------------------------------------------------------------ -----------------------------
Consolidated 292.2% 52.5%123.7% 50.2% 67.4% 50.8% 38.5% 45.9% 45.8%
========================================================================================== =============================
Page 2 of 13
ConocoPhillips
CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX)
Millions of Dollars
-------------------------------------------------
2002 2003
------------------------- -----------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------- -----------------------
U.S. E&P
Gain (loss) on asset sales - - - - - - 16 65 81
Property impairments - (3) (5) - (8) - (14) (10) (24)
Pending claims and settlements - - - - - - (20) - (20)
- ------------------------------------------------------------------------------------------------ -----------------------
Total - (3) (5) - (8) - (18) 55 37
- ------------------------------------------------------------------------------------------------ -----------------------
International E&P
Gain (loss) on asset sales - - - 17 17 - - 33 33
Property impairments (7) (3) - (14) (24) (12) (32) - (44)
U.K. tax law change - - (24) - (24) - - - -
Norway Removal Grant Act (1986) repeal* - - - - - - 87 - 87
Bayu-Undan ownership realignment - - - - - - 51 - 51
Angola leasehold impairment (77) - - - (77) - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total (84) (3) (24) 3 (108) (12) 106 33 127
- ------------------------------------------------------------------------------------------------ -----------------------
Total E&P (84) (6) (29) 3 (116) (12) 88 88 164
- ------------------------------------------------------------------------------------------------ -----------------------
Midstream
- - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total - - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
U.S. R&M
Gain (loss) on asset sales - - - - - - - - -
Property impairments - - - (83) (83) - - - -
Other - - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total - - - (83) (83) - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
International R&M
Gain (loss) on asset sales - - - - - - - - -
Property impairments - - - - - - - - -
Other - - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total - - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total R&M - - - (83) (83) - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Chemicals
- - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total - - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Emerging Businesses
Write-off of in-process R&D - - (246) - (246) - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total - - (246) - (246) - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Corporate and Other
Insurance demutualization benefits - - - - - 34 - - 34
Property impairments - - - - - - (3) - (3)
Merger-related expenses (2) (1)(221) (83)(307) (27)(115) (41) (183)
Premium on early debt retirement - (15) - (1) (16) (10) (9) - (19)
Other - - - - - - - - -
- ------------------------------------------------------------------------------------------------ -----------------------
Total (2)(16)(221) (84)(323) (3)(127) (41) (171)
- ------------------------------------------------------------------------------------------------ -----------------------
Total Company (86)(22)(496)(164)(768) (15) (39) 47 (7)
========================================================================================================================
* Net of $21 million of property impairments.
Page 3 of 13
ConocoPhillips
CASH FLOW INFORMATION
Millions of Dollars
----------------------------------------------------------------
2002 2003
------------------------------- --------------------------------
1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr 3rd Qtr 4th YTD
Qtr Qtr Qtr
------------------------------- --------------------------------
DD&A (including property impairments)
included in net cash provided by
operating activities 406 402 557 1,035 2,400 887 1,003 876 2,766
======================================================================================= ================================
Net Cash Provided by
Operating Activities 579 530 1,877 1,983 4,969 3,164 2,153 2,041 7,358
- --------------------------------------------------------------------------------------- --------------------------------
Cash Flows from Investing Activities
Capital expenditures and investments:
E&P (517)(701) (715)(1,343)(3,276) (1,012)(1,167)(1,109) (3,288)
Midstream - (1) (1) (3) (5) (2) (2) (2) (6)
R&M (104)(129) (192) (415) (840) (202) (240) (298) (740)
Chemicals (10) (9) (10) (31) (60) - - - -
Emerging Businesses - - (35) (87) (122) (66) (98) (60) (224)
Corporate and Other (14) (34) (7) (30) (85) (26) (50) (51) (127)
- --------------------------------------------------------------------------------------- --------------------------------
Total capital expend. & investments (645)(874) (960)(1,909)(4,388) (1,308)(1,557)(1,520) (4,385)
Acquisitions, net of cash acquired - - 1,242 (62) 1,180 - - - -
Acquisitions - adoption of FIN 46 - - - - - 225 - - 225
Proceeds from asset dispositions 45 36 19 715 815 126 465 913 1,504
Long-term advances to affiliates and
other investments (12) 14 (83) (11) (92) (28) (9) 39 2
Discontinued operations (12) (12) (22) (53) (99) (14) 3 (38) (49)
- --------------------------------------------------------------------------------------- --------------------------------
Net Cash Used for Investing Activities (624)(836) 196 (1,320)(2,584) (999)(1,098) (606) (2,703)
- --------------------------------------------------------------------------------------- --------------------------------
Cash Flows from Financing Activities
Net issuance (repayment) of debt 204 725 (1,432) (587)(1,090) (1,569) (708)(1,515) (3,792)
Redemption of preferred stock - (300) - - (300) - - - -
Dividends (138)(137) (138) (271) (684) (271) (272) (272) (815)
Other 7 (7) (131) (15) (146) 11 32 85 128
- --------------------------------------------------------------------------------------- --------------------------------
Net Cash Provided by (Used for)
Financing Activities 73 281 (1,701) (873)(2,220) (1,829) (948)(1,702) (4,479)
- --------------------------------------------------------------------------------------- --------------------------------
Net Change in Cash
and Cash Equivalents 28 (25) 372 (210) 165 336 107 (267) 176
Cash and cash equivalents
at beginning of period 142 170 145 517 142 307 643 750 307
- --------------------------------------------------------------------------------------- --------------------------------
Cash and Cash Equivalents
at End of Period 170 145 517 307 307 643 750 483 483
======================================================================================= ================================
Page 4 of 13
TOTAL E&P
2002 2003
------------------------------ ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------------
E&P Net Income ($ Millions) 142 339 460 808 1,749 1,254 1,077 967 3,298
=========================================================================================== ============================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 833 798 1,046 1,623 1,077 1,622 1,636 1,556 1,604
- ------------------------------------------------------------------------------------------- ----------------------------
Crude Oil and Condensate (MB/D)
Consolidated 566 546 620 854 647 880 850 793 841
Equity affiliates 5 4 44 87 35 55 117 120 97
- ------------------------------------------------------------------------------------------- ----------------------------
Total 571 550 664 941 682 935 967 913 938
=========================================================================================== ============================
Sales of crude oil produced (MB/D) 566 557 664 918 677 911 996 917 941
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas Liquids (MB/D) 37 34 43 70 46 67 67 57 64
- ------------------------------------------------------------------------------------------------------------------------
Natural Gas (MMCF/D)
Consolidated 1,349 1,286 1,982 3,529 2,043 3,605 3,485 3,373 3,487
Equity affiliates - - 4 13 4 12 11 11 11
- ------------------------------------------------------------------------------------------- ----------------------------
Total 1,349 1,286 1,986 3,542 2,047 3,617 3,496 3,384 3,498
=========================================================================================== ============================
Canadian Syncrude (MB/D) - - 8 22 8 17 19 22 19
- ------------------------------------------------------------------------------------------- ----------------------------
Industry Prices (Platt's)
Crude Oil ($/bbl)
WTI spot 21.56 26.27 28.31 28.20 26.09 34.06 29.02 30.18 31.09
Brent dated 21.14 25.04 26.94 26.78 24.98 31.51 26.03 28.41 28.65
Natural Gas--Henry Hub 1st of month ($/mcf) 2.34 3.38 3.16 3.97 3.21 6.58 5.40 4.97 5.65
- ------------------------------------------------------------------------------------------- ----------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated 19.41 24.46 26.38 26.12 24.38 31.27 26.33 28.15 28.57
Equity affiliates 15.86 21.06 20.29 17.50 18.41 20.97 16.85 19.90 18.84
Total 19.37 24.44 25.97 25.31 24.07 30.73 25.19 27.00 27.55
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas Liquids ($/bbl) 16.00 20.36 19.42 19.32 18.93 24.73 19.17 19.72 21.22
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas ($/mcf)
Consolidated 2.15 2.40 2.49 3.27 2.77 4.49 3.92 3.80 4.07
Equity affiliates - - 1.78 3.00 2.71 4.82 4.89 4.12 4.61
Total 2.15 2.40 2.49 3.27 2.77 4.49 3.93 3.80 4.08
- ------------------------------------------------------------------------------------------- ----------------------------
Exploration Charges ($ Millions)
Dry Holes 16 17 4 124 161 20 30 39 89
Lease Impairments 93 16 15 22 146 20 24 36 80
- ------------------------------------------------------------------------------------------- ----------------------------
Total Non-Cash Charges 109 33 19 146 307 40 54 75 169
Other (G&G and Lease Rentals) 54 34 66 131 285 76 88 57 221
- ------------------------------------------------------------------------------------------- ----------------------------
Total Exploration Charges 163 67 85 277 592 116 142 132 390
=========================================================================================== ============================
Depreciation, Depletion & Amortization
Producing operations ($ millions) 274 278 398 666 1,616 643 630 636 1,909
- ------------------------------------------------------------------------------------------- ----------------------------
Page 5 of 13
ConocoPhillips
U.S. E&P
2002 2003
------------------------------ ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------------
U.S. E&P Net Income ($ Millions) 155 280 306 415 1,156 820 517 546 1,883
=========================================================================================== ============================
Alaska ($ Millions) 123 223 246 278 870 508 302 302 1,112
- ------------------------------------------------------------------------------------------- ----------------------------
Lower 48 ($ Millions) 32 57 60 137 286 312 215 244 771
- ------------------------------------------------------------------------------------------- ----------------------------
Production
Total U.S. (MBOE/D) 564 538 562 684 587 696 678 646 672
- ------------------------------------------------------------------------------------------- ----------------------------
Crude Oil and Condensate (MB/D)
Alaska 353 339 310 323 331 337 331 314 327
Lower 48 33 31 38 58 40 60 57 51 56
- ------------------------------------------------------------------------------------------- ----------------------------
Total 386 370 348 381 371 397 388 365 383
=========================================================================================== ============================
Sales of crude oil produced (MB/D) 383 374 360 370 372 391 389 369 383
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas Liquids (MB/D)*
Alaska 27 25 21 24 24 25 23 19 22
Lower 48 1 1 9 21 8 19 21 20 20
- ------------------------------------------------------------------------------------------- ----------------------------
Total 28 26 30 45 32 44 44 39 42
=========================================================================================== ============================
*Includes reinjection volumes sold lease-to-lease: 15 14 13 15 14 15 14 13 14
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas (MMCF/D)
Alaska 168 160 183 186 175 189 162 180 177
Lower 48 734 689 922 1,362 928 1,338 1,311 1,271 1,306
- ------------------------------------------------------------------------------------------- ----------------------------
Total 902 849 1,105 1,548 1,103 1,527 1,473 1,451 1,483
=========================================================================================== ============================
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Alaska
North Slope 13.58 18.96 20.42 21.10 18.42 25.95 21.70 22.82 23.49
- ------------------------------------------------------------------------------------------- ----------------------------
West Coast 18.72 24.40 25.83 26.43 23.75 31.47 27.19 28.31 28.99
- ------------------------------------------------------------------------------------------- ----------------------------
Lower 48 18.86 24.53 26.87 26.00 24.48 31.48 27.34 27.94 28.98
- ------------------------------------------------------------------------------------------- ----------------------------
Total U.S. 18.73 24.41 25.94 26.36 23.83 31.47 27.21 28.26 28.99
- ------------------------------------------------------------------------------------------- ----------------------------
. . .
Natural Gas Liquids ($/bbl)
Alaska 18.67 24.40 25.68 26.48 23.48 31.32 27.24 28.42 29.12
- ------------------------------------------------------------------------------------------- ----------------------------
Lower 48 12.75 16.74 14.62 16.17 15.66 21.91 15.89 18.76 18.71
- ------------------------------------------------------------------------------------------- ----------------------------
Total U.S. 18.13 23.61 20.17 19.27 20.00 25.13 19.33 20.87 21.74
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas ($/mcf)
Alaska 2.13 1.80 1.58 1.95 1.85 1.97 1.88 1.33 1.71
- ------------------------------------------------------------------------------------------- ----------------------------
Lower 48 1.99 2.56 2.65 3.43 2.79 5.47 4.72 4.56 4.92
- ------------------------------------------------------------------------------------------- ----------------------------
Total U.S. 1.99 2.51 2.60 3.38 2.75 5.34 4.58 4.41 4.78
- ------------------------------------------------------------------------------------------- ----------------------------
Kenai, Alaska LNG Sales
Volume (MMCF/D) 117 114 128 128 122 130 91 121 114
- ------------------------------------------------------------------------------------------- ----------------------------
Sales price per MCF 4.00 3.74 4.21 4.30 4.07 4.38 4.56 4.46 4.46
- ------------------------------------------------------------------------------------------- ----------------------------
U.S. Exploration Charges ($ Millions)
Dry Holes 14 3 1 61 79 16 3 9 28
Lease Impairments 13 12 10 14 49 13 12 10 35
- ------------------------------------------------------------------------------------------- ----------------------------
Total Non-Cash Charges 27 15 11 75 128 29 15 19 63
Other (G&G and Lease Rentals) 17 10 20 39 86 28 22 23 73
- ------------------------------------------------------------------------------------------- ----------------------------
Total U.S. Exploration Charges 44 25 31 114 214 57 37 42 136
=========================================================================================== ============================
Alaska Only 27 12 11 45 95 25 10 11 46
- ------------------------------------------------------------------------------------------- ----------------------------
Depreciation, Depletion & Amortization
Producing operations ($ millions)
Alaska 156 157 136 140 589 113 124 118 355
Lower 48 54 48 93 149 344 148 148 153 449
- ------------------------------------------------------------------------------------------- ----------------------------
Total U.S. 210 205 229 289 933 261 272 271 804
=========================================================================================== ============================
Page 6 of 13
ConocoPhillips
INTERNATIONAL E&P
2002 2003
------------------------------ ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------------
International E&P
Net Income (Loss) ($ Millions) (13) 59 154 393 593 434 560 421 1,415
=========================================================================================== ============================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 269 261 484 939 490 926 958 910 932
- ------------------------------------------------------------------------------------------- ----------------------------
Crude Oil and Condensate (MB/D)
Consolidated
Norway 118 119 156 233 157 226 214 207 215
United Kingdom 17 18 35 86 39 87 82 67 79
Canada 1 1 14 37 13 33 31 29 31
Nigeria 27 23 29 38 29 38 39 36 38
China 13 11 12 11 12 23 27 25 25
Indonesia - - 6 13 5 21 17 16 18
Other 4 4 20 55 21 55 52 48 52
Equity affiliates 5 4 44 87 35 55 117 120 97
- ------------------------------------------------------------------------------------------- ----------------------------
Total 185 180 316 560 311 538 579 548 555
=========================================================================================== ============================
Sales of crude oil produced (MB/D) 183 183 304 548 306 520 607 548 558
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas Liquids (MB/D)
Norway 5 4 6 7 6 8 7 7 8
Canada - - 3 14 4 11 11 9 10
Other 4 4 4 4 4 4 5 2 4
- ------------------------------------------------------------------------------------------- ----------------------------
Total 9 8 13 25 14 23 23 18 22
=========================================================================================== ============================
Natural Gas (MMCF/D)
Consolidated
Norway 135 131 183 232 171 305 273 216 265
United Kingdom 173 189 349 975 424 1,002 952 853 935
Canada 19 22 172 442 165 436 424 448 436
Indonesia - - 68 220 72 224 246 275 248
Other 120 95 105 112 108 111 117 130 120
Equity affiliates - - 4 13 4 12 11 11 11
- ------------------------------------------------------------------------------------------- ----------------------------
Total 447 437 881 1,994 944 2,090 2,023 1,933 2,015
=========================================================================================== ============================
Canadian Syncrude (MB/D) - - 8 22 8 17 19 22 19
- ------------------------------------------------------------------------------------------- ----------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated
Norway 21.04 24.49 27.19 26.35 25.21 32.72 26.28 29.08 29.29
United Kingdom 21.21 24.14 26.88 25.98 25.33 30.11 24.34 28.32 27.50
Canada 20.03 24.85 27.20 21.26 22.87 28.40 23.61 24.15 25.47
Nigeria 21.14 24.95 27.51 26.97 25.37 31.94 26.35 28.48 28.75
China 19.57 25.27 26.31 29.64 25.03 28.87 26.51 26.38 27.16
Indonesia - - 24.89 30.59 28.10 29.35 24.54 26.32 26.95
Other 15.00 25.18 25.75 25.18 24.94 29.10 25.38 26.58 27.05
Equity affiliates 15.86 21.06 20.29 17.50 18.41 20.97 16.85 19.90 18.84
Total 20.71 24.51 26.01 24.60 24.36 30.17 23.90 26.15 26.57
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas Liquids ($/bbl)
Norway 12.88 15.48 15.64 20.69 16.51 21.85 18.13 18.50 19.39
Canada - - 29.12 18.42 20.39 26.11 20.78 23.55 23.51
Other 12.58 13.29 13.74 20.51 15.29 23.40 16.73 14.18 15.37
Total 12.76 14.58 18.42 19.39 17.47 24.22 18.96 18.23 20.55
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas ($/mcf)
Consolidated
Norway 3.22 3.02 3.16 3.33 3.20 3.66 3.86 4.21 3.88
United Kingdom 3.18 2.55 2.22 3.20 2.92 3.55 3.17 2.88 3.22
Canada 2.23 2.21 2.32 3.37 3.03 5.42 4.34 4.17 4.64
Indonesia - - 4.18 4.11 4.12 4.66 4.16 4.35 4.38
Other 0.41 0.39 0.41 0.45 0.42 0.48 0.48 0.50 0.49
Equity affiliates - - 1.78 3.00 2.71 4.82 4.89 4.12 4.61
Total 2.41 2.20 2.37 3.20 2.79 3.92 3.48 3.38 3.60
- ------------------------------------------------------------------------------------------- ----------------------------
International Exploration Charges ($ Millions)
Dry Holes 2 14 3 63 82 4 27 30 61
Lease Impairments 80 4 5 8 97 7 12 26 45
- ------------------------------------------------------------------------------------------- ----------------------------
Total Non-Cash Charges 82 18 8 71 179 11 39 56 106
Other (G&G and Lease Rentals) 37 24 46 92 199 48 66 34 148
- ------------------------------------------------------------------------------------------- ----------------------------
Total International Exploration Charges 119 42 54 163 378 59 105 90 254
=========================================================================================== ============================
Depreciation, Depletion & Amortization
Producing operations ($ millions) 64 73 169 377 683 383 358 364 1,105
- ------------------------------------------------------------------------------------------- ----------------------------
Page 7 of 13
ConocoPhillips
R&M
2002 2003
------------------------- ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------- ----------------------------
R&M Net Income (Loss) ($ Millions) (87) 68 57 105 143 264 321 485 1,070
=========================================================================================== ============================
United States ($ Millions) (92) 73 44 113 138 150 248 416 814
- ------------------------------------------------------------------------------------------- ----------------------------
International ($ Millions) 5 (5) 13 (8) 5 114 73 69 256
- ------------------------------------------------------------------------------------------- ----------------------------
Market Indicators
U.S. East Coast Crack Spread ($/bbl) 2.90 2.86 3.06 4.58 3.35 6.16 3.46 6.37 5.33
U.S. Gulf Coast Crack Spread ($/bbl) 2.78 3.70 2.79 3.74 3.25 5.64 3.65 5.38 4.89
U.S. Group Central Spread ($/bbl) 3.88 5.07 5.16 5.69 4.95 6.12 6.96 8.32 7.14
U.S. West Coast Crack Spread ($/bbl) 9.67 9.53 8.58 8.40 9.04 12.79 11.39 14.00 12.73
NW Europe Crack Spread ($/bbl) 0.74 1.38 1.70 2.72 1.64 5.68 3.17 3.11 3.99
- ------------------------------------------------------------------------------------------- ----------------------------
Realized Margins
Refining Margin ($/bbl)
U.S. n/a n/a n/a 5.07 n/a 6.50 5.34 6.39 6.07
International n/a n/a n/a 2.98 n/a 5.63 3.98 3.98 4.54
- ------------------------------------------------------------------------------------------- ----------------------------
Marketing Margin ($/gal)
U.S. n/a n/a n/a 0.04 n/a 0.04 0.06 0.05 0.05
International n/a n/a n/a 0.16 n/a 0.17 0.22 0.19 0.19
- ------------------------------------------------------------------------------------------- ----------------------------
Depreciation, Depletion &
Amortization ($ Millions) 102 98 119 167 486 167 174 174 515
- ------------------------------------------------------------------------------------------- ----------------------------
Maintenance Turnaround
Expense ($ Millions) 71 29 47 29 176 61 41 19 121
- ------------------------------------------------------------------------------------------- ----------------------------
Consolidated
EASTERN U.S.
Charge Barrels Input (MB/D)
Crude Oil 348 404 338 399 372 415 435 428 426
Other Feed and Blending Stocks 53 47 16 61 44 51 53 40 48
- ------------------------------------------------------------------------------------------- ----------------------------
Total 401 451 354 460 416 466 488 468 474
=========================================================================================== ============================
Percentage Utilization 81% 94% 79% 93% 87% 97% 101% 100% 99%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline 214 247 187 260 227 244 249 243 245
Distillates 111 114 88 116 107 138 131 117 129
Aviation Fuel 35 37 37 37 36 32 29 37 33
Other 46 52 36 51 47 55 85 75 72
- ------------------------------------------------------------------------------------------- ----------------------------
Total 406 450 348 464 417 469 494 472 479
=========================================================================================== ============================
U.S. GULF COAST
Charge Barrels Input (MB/D)
Crude Oil 414 428 509 652 501 668 702 708 693
Other Feed and Blending Stocks 80 67 87 101 85 103 95 95 98
- ------------------------------------------------------------------------------------------- ----------------------------
Total 494 495 596 753 586 771 797 803 791
=========================================================================================== ============================
Percentage Utilization 90% 92% 93% 91% 92% 93% 98% 99% 97%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline 213 211 236 300 240 289 277 288 284
Distillates 146 144 172 247 177 242 249 265 252
Aviation Fuel 37 39 52 62 48 70 63 71 68
Other 102 116 148 181 137 221 242 228 230
- ------------------------------------------------------------------------------------------- ----------------------------
Total 498 510 608 790 602 822 831 852 834
=========================================================================================== ============================
CENTRAL U.S.
Charge Barrels Input (MB/D)
Crude Oil 348 424 466 633 469 631 663 618 637
Other Feed and Blending Stocks 34 32 39 46 37 32 24 33 30
- ------------------------------------------------------------------------------------------- ----------------------------
Total 382 456 505 679 506 663 687 651 667
=========================================================================================== ============================
Percentage Utilization 84% 98% 90% 92% 91% 92% 96% 90% 93%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline 200 235 269 389 274 367 375 367 370
Distillates 64 74 76 148 91 144 152 123 139
Aviation Fuel 50 49 58 64 55 59 57 64 60
Other 61 98 99 91 87 96 110 102 103
- ------------------------------------------------------------------------------------------- ----------------------------
Total 375 456 502 692 507 666 694 656 672
=========================================================================================== ============================
n/a = not available.
Page 8 of 13
ConocoPhillips
R&M (continued)
2002 2003
------------------------------ ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------------
WESTERN U.S.
Charge Barrels Input (MB/D)
Crude Oil 306 320 330 320 319 294 328 329 317
Other Feed and Blending Stocks (3) 16 13 16 11 9 13 12 11
- ------------------------------------------------------------------------------------------- ----------------------------
Total 303 336 343 336 330 303 341 341 328
=========================================================================================== ============================
Percentage Utilization 92% 96% 99% 96% 96% 88% 99% 99% 95%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline 137 148 175 174 159 160 176 172 170
Distillates 71 77 78 81 77 66 83 86 79
Aviation Fuel 27 31 33 30 30 29 24 28 27
Other 61 60 51 48 55 42 55 56 50
- ------------------------------------------------------------------------------------------- ----------------------------
Total 296 316 337 333 321 297 338 342 326
=========================================================================================== ============================
TOTAL UNITED STATES
Charge Barrels Input (MB/D)
Crude Oil 1,416 1,576 1,643 2,004 1,661 2,008 2,128 2,083 2,073
Other Feed and Blending Stocks 164 162 155 224 177 195 185 180 187
- ------------------------------------------------------------------------------------------- ----------------------------
Total 1,580 1,738 1,798 2,228 1,838 2,203 2,313 2,263 2,260
=========================================================================================== ============================
Percentage Utilization 86% 95% 90% 93% 91% 93% 98% 96% 96%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline 764 841 867 1,123 900 1,060 1,077 1,070 1,069
Distillates 392 409 414 592 452 590 615 591 599
Aviation Fuel 149 156 180 193 169 190 173 200 188
Other 270 326 334 371 326 414 492 461 455
- ------------------------------------------------------------------------------------------- ----------------------------
Total 1,575 1,732 1,795 2,279 1,847 2,254 2,357 2,322 2,311
=========================================================================================== ============================
UNITED KINGDOM and IRELAND
Charge Barrels Input (MB/D)
Crude Oil 65 67 126 177 109 262 244 258 255
Other Feed and Blending Stocks - - 15 30 11 39 42 38 39
- ------------------------------------------------------------------------------------------- ----------------------------
Total 65 67 141 207 120 301 286 296 294
=========================================================================================== ============================
Percentage Utilization 90% 92% 85% 58% 73% 86% 80% 84% 83%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline 15 16 42 64 34 99 91 99 96
Distillates 26 26 56 76 46 125 118 128 124
Aviation Fuel - - 4 6 3 14 7 10 10
Other 21 21 32 77 38 54 59 45 53
- ------------------------------------------------------------------------------------------- ----------------------------
Total 62 63 134 223 121 292 275 282 283
=========================================================================================== ============================
Equity Affiliates - Net Share
International*
Charge Barrels Input (MB/D)
Crude Oil - - 42 130 43 134 132 129 132
Other Feed and Blending Stocks - - 1 3 1 2 3 5 3
- ------------------------------------------------------------------------------------------- ----------------------------
Total - - 43 133 44 136 135 134 135
=========================================================================================== ============================
Percentage Utilization - - 95% 95% 95% 98% 97% 95% 97%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline - - 13 41 14 43 41 40 41
Distillates - - 18 58 19 58 59 57 58
Aviation Fuel - - 4 7 3 10 8 9 9
Other - - 9 19 7 33 24 25 28
- ------------------------------------------------------------------------------------------- ----------------------------
Total - - 44 125 43 144 132 131 136
=========================================================================================== ============================
* Represents 18.75 percent interest in a refinery complex at Karlsruhe,
Germany; 16.33 percent interest in two refineries in Kralupy and Litvinov,
Czech Republic; and 47 percent interest in a refinery at Melaka, Malaysia.
Page 9 of 13
ConocoPhillips
R&M (continued)
2002 2003
------------------------------ ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------------
Worldwide - Including Share of Equity Affiliates
Charge Barrels Input (MB/D)
Crude Oil 1,481 1,643 1,811 2,311 1,813 2,404 2,504 2,470 2,460
Other Feed and Blending Stocks 164 162 171 257 189 236 230 223 229
- ------------------------------------------------------------------------------------------- ----------------------------
Total 1,645 1,805 1,982 2,568 2,002 2,640 2,734 2,693 2,689
=========================================================================================== ============================
Percentage Utilization 86% 95% 90% 89% 90% 92% 96% 95% 94%
- ------------------------------------------------------------------------------------------- ----------------------------
Refined Products Production (MB/D)
Gasoline 779 857 922 1,228 948 1,202 1,209 1,209 1,206
Distillates 418 435 488 726 517 773 792 776 781
Aviation Fuel 149 156 188 206 175 214 188 219 207
Other 291 347 375 467 371 501 575 531 536
- ------------------------------------------------------------------------------------------- ----------------------------
Total 1,637 1,795 1,973 2,627 2,011 2,690 2,764 2,735 2,730
=========================================================================================== ============================
U.S. PETROLEUM PRODUCTS SALES (MB/D)*
Gasoline 1,084 1,159 1,195 1,478 1,230 1,331 1,381 1,398 1,370
Distillates 439 424 449 692 502 600 590 580 590
Aviation Fuel 162 185 219 172 185 164 164 197 176
Other 398 341 350 403 372 509 493 497 499
- ------------------------------------------------------------------------------------------- ----------------------------
Total 2,083 2,109 2,213 2,745 2,289 2,604 2,628 2,672 2,635
=========================================================================================== ============================
*2002 amounts restated.
INTERNATIONAL PETROLEUM PRODUCTS SALES (MB/D)
Gasoline 12 12 78 163 67 202 190 181 191
Distillates 20 21 84 147 69 181 199 192 190
Aviation Fuel - - 2 6 2 5 7 14 9
Other 22 17 37 24 24 40 52 54 49
- ------------------------------------------------------------------------------------------- ----------------------------
Total 54 50 201 340 162 428 448 441 439
=========================================================================================== ============================
SPECIALTIES
Base Oil Production(MB/D)
United States - Equity Affiliate - - 3 10 3 10 7 11 9
- ------------------------------------------------------------------------------------------- ----------------------------
Petroleum Coke Sales (MMT)*
United States
Fuel coke 297 311 500 565 1,673 683 653 653 1,989
Specialty coke 56 57 196 292 601 276 282 253 811
- ------------------------------------------------------------------------------------------- ----------------------------
International
Fuel coke - - 12 54 66 57 50 35 142
Specialty coke - - 68 180 248 176 180 171 527
- ------------------------------------------------------------------------------------------- ----------------------------
Finished Lubes Sales (MB/D)*
United States 8 9 9 10 9 10 10 12 11
- ------------------------------------------------------------------------------------------- ----------------------------
International - - - 1 - 1 - 1 -
- ------------------------------------------------------------------------------------------- ----------------------------
*Included in "Other" in the petroleum products sales statistics above.
Page 10 of 13
ConocoPhillips
MIDSTREAM
2002 2003
--------------------------------- --------------------------------
1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr3rd Qtr4th YTD
Qtr Qtr Qtr
--------------------------------- --------------------------------
Midstream Net Income ($ Millions) 12 12 11 20 55 31 25 31 87
========================================================================================================================
U.S. Equity Affiliate ($ Millions)* 5 7 6 5 23 13 23 18 54
- --------------------------------------------------------------------------------------- --------------------------------
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States - - 19 56 19 51 53 50 51
International - - 15 45 15 47 35 47 44
Equity Affiliates
United States* 117 119 119 119 119 114 110 111 111
International - - 3 10 3 10 11 12 11
- --------------------------------------------------------------------------------------- --------------------------------
Total 117 119 156 230 156 222 209 220 217
======================================================================================= ================================
* Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS).
Natural Gas Liquids Fractionated (MB/D)
United States 107 104 139 179 133 168 158 172 166
- --------------------------------------------------------------------------------------- --------------------------------
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated - - 18.57 19.24 19.07 25.59 20.99 20.94 22.51
DEFS 12.83 15.59 16.32 18.95 15.92 24.53 20.53 20.67 21.91
- --------------------------------------------------------------------------------------- --------------------------------
* Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids
component and location mix.
Depreciation, Depletion &
Amortization ($ Millions) 1 - 5 13 19 14 14 13 41
- --------------------------------------------------------------------------------------- --------------------------------
EMERGING BUSINESSES
2002 2003
--------------------------------- --------------------------------
1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr3rd Qtr4th YTD
Qtr Qtr Qtr
--------------------------------- --------------------------------
Emerging Businesses
Net Income (Loss) ($ Millions)* (5) (3) (262) (40) (310) (34) (23) (18) (75)
========================================================================================================================
Detail of Net Income (Loss) ($ Millions)
Technology Solutions (5) (3) (4) (4) (16) (5) (6) (5) (16)
Gas-to-Liquids* - - (253) (20) (273) (20) (13) (7) (40)
Power - - (1) (2) (3) 1 (1) (3) (3)
Other - - (4) (14) (18) (10) (3) (3) (16)
- --------------------------------------------------------------------------------------- --------------------------------
Total (5) (3) (262) (40) (310) (34) (23) (18) (75)
======================================================================================= ================================
* Third quarter 2002 results include a $246 million write down of acquired in-
process R&D.
CORPORATE AND OTHER
2002 2003
--------------------------------- --------------------------------
1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr3rd Qtr4th YTD
Qtr Qtr Qtr
--------------------------------- --------------------------------
Corporate and Other
Net Income (Loss) ($ Millions) (153) (72) (385)(1,308)(1,918) (289) (226) (166) (681)
========================================================================================================================
Detail of Net Income (Loss) ($ Millions)
Net interest expense (78) (91) (83) (160) (412) (190) (145) (134) (469)
Corporate overhead (47) (27) (32) (67) (173) (30) (43) (33) (106)
Discontinued operations (4) 39 (42) (986) (993) 53 91 57 201
Merger-related costs (2) (1) (221) (83) (307) (27) (115) (41) (183)
Accounting change - - - - - (117) - - (117)
Other (22) 8 (7) (12) (33) 22 (14) (15) (7)
- --------------------------------------------------------------------------------------- --------------------------------
Total (153) (72) (385)(1,308)(1,918) (289) (226) (166) (681)
======================================================================================= ================================
Before-Tax Net Interest Expense ($ Millions)
Interest expense (158) (157) (193) (291) (799) (339) (306) (314) (959)
Capitalized interest 51 51 59 72 233 73 78 98 249
Interest revenue 4 2 13 21 40 29 31 27 87
Premium on early debt retirement - (21) - (3) (24) (12) (11) - (23)
- --------------------------------------------------------------------------------------- --------------------------------
(103) (125) (121) (201) (550) (249) (208) (189) (646)
======================================================================================= ================================
Debt
Total Debt ($ Millions)* 8,902 9,635 20,453 19,766 19,766 21,015 20,262 18,887 18,887
Debt-to-Capital Ratio* 37.6% 39.4% 39.8% 39.3% 39.3% 40.1% 38.3% 36.0% 36.0%
- --------------------------------------------------------------------------------------- --------------------------------
* 2003 amounts reflect the January 1, 2003, adoption of FIN 46.
Page 11 of 13
ConocoPhillips
SELECTED PRO FORMA STATISTICS (E&P)
2002 2003
------------------------------ ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------------
E&P
E&P Production
Total Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 1,676 1,619 1,546 1,623 1,616 1,622 1,636 1,556 1,604
- ------------------------------------------------------------------------------------------- ----------------------------
Crude Oil and Condensate (MB/D)
Consolidated
U.S. 424 406 370 381 395 397 388 365 383
Norway 200 208 219 233 215 226 214 207 215
United Kingdom 81 78 63 86 77 87 82 67 79
Canada 46 45 42 37 42 33 31 29 31
Nigeria 40 34 35 38 37 38 39 36 38
China 13 11 12 11 12 23 27 25 25
Indonesia 26 23 22 13 21 21 17 16 18
Other 52 50 48 55 51 55 52 48 52
Equity affiliates 91 84 104 87 92 55 117 120 97
- ------------------------------------------------------------------------------------------- ----------------------------
Total 973 939 915 941 942 935 967 913 938
=========================================================================================== ============================
Natural Gas Liquids (MB/D)
U.S. 48 46 42 45 45 44 44 39 42
International 24 22 24 25 24 23 23 18 22
- ------------------------------------------------------------------------------------------- ----------------------------
Total 72 68 66 70 69 67 67 57 64
=========================================================================================== ============================
Natural Gas (MMCF/D)
Consolidated
U.S. 1,635 1,566 1,578 1,548 1,581 1,527 1,473 1,451 1,483
Norway 291 290 252 232 266 305 273 216 265
United Kingdom 869 856 603 975 826 1,002 952 853 935
Canada 548 565 512 442 517 436 424 448 436
Indonesia 179 169 189 220 189 224 246 275 248
Other 120 95 105 112 108 111 117 130 120
Equity affiliates 12 13 13 13 13 12 11 11 11
- ------------------------------------------------------------------------------------------- ----------------------------
Total 3,654 3,554 3,252 3,542 3,500 3,617 3,496 3,384 3,498
=========================================================================================== ============================
Canadian Syncrude (MB/D) 22 20 23 22 22 17 19 22 19
- ------------------------------------------------------------------------------------------- ----------------------------
E&P Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated
U.S. 18.66 24.33 25.85 26.36 23.69 31.47 27.21 28.26 28.99
Norway 20.77 24.42 26.78 26.35 24.61 32.72 26.28 29.08 29.29
United Kingdom 19.78 23.69 26.15 25.98 23.99 30.11 24.34 28.32 27.50
Canada 19.39 21.79 24.96 21.26 21.82 28.40 23.61 24.15 25.47
Nigeria 21.33 25.16 27.40 26.97 25.12 31.94 26.35 28.48 28.75
China 19.57 25.27 26.31 29.64 25.03 28.87 26.51 26.38 27.16
Indonesia 19.38 24.46 24.21 30.59 23.51 29.35 24.54 26.32 26.95
Other 19.39 24.66 25.55 25.18 23.58 29.10 25.38 26.58 27.05
Equity affiliates 13.40 18.26 19.06 17.50 17.14 20.97 16.85 19.90 18.84
Total 18.93 23.71 25.24 25.31 23.26 30.73 25.19 27.00 27.55
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas Liquids ($/bbl)
U.S. 12.92 17.05 16.78 19.27 16.44 25.13 19.33 20.87 21.74
International 9.86 15.62 18.56 19.39 15.95 24.22 18.96 18.23 20.55
Total 11.67 16.49 17.57 19.32 16.24 24.73 19.17 19.72 21.22
- ------------------------------------------------------------------------------------------- ----------------------------
Natural Gas ($/mcf)
Consolidated
U.S. 2.26 2.80 2.71 3.38 2.78 5.34 4.58 4.41 4.78
Norway 3.20 2.99 3.26 3.33 3.19 3.66 3.86 4.21 3.88
United Kingdom 3.43 2.37 1.95 3.20 2.81 3.55 3.17 2.88 3.22
Canada 1.74 2.50 2.13 3.37 2.40 5.42 4.34 4.17 4.64
Indonesia 3.16 4.13 4.13 4.11 3.89 4.66 4.16 4.35 4.38
Other 0.41 0.39 0.41 0.45 0.42 0.48 0.48 0.50 0.49
Equity affiliates 2.17 2.60 1.78 3.00 2.39 4.82 4.89 4.12 4.61
Total 2.53 2.66 2.52 3.27 2.75 4.49 3.93 3.80 4.08
- ------------------------------------------------------------------------------------------- ----------------------------
Note: Pro forma information derived by summing the historical Phillips and Conoco data for the period indicated.
Page 12 of 13
ConocoPhillips
SELECTED PRO FORMA STATISTICS (Midstream and R&M)
2002 2003
------------------------------ ----------------------------
1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD
Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr
------------------------------ ----------------------------
Midstream
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States 49 52 50 56 52 51 53 50 51
International 42 42 46 45 44 47 35 47 44
Equity Affiliates
United States* 117 119 119 119 119 114 110 111 111
International 9 9 9 10 9 10 11 12 11
- ------------------------------------------------------------------------------------------- ----------------------------
Total 217 222 224 230 223 222 209 220 217
=========================================================================================== ============================
* Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS).
Natural Gas Liquids Fractionated (MB/D)
United States 166 159 177 179 170 168 158 172 166
- ------------------------------------------------------------------------------------------- ----------------------------
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated 13.23 15.99 16.69 19.24 16.31 25.59 20.99 20.94 22.51
DEFS 12.83 15.59 16.32 18.95 15.92 24.53 20.53 20.67 21.91
- ------------------------------------------------------------------------------------------- ----------------------------
* Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids
component and location mix.
R&M
Charge Barrels Input (MB/D)
Eastern U.S.
Crude Oil 348 404 338 399 372 415 435 428 426
Other Feed and Blending Stocks 53 47 16 61 44 51 53 40 48
- ------------------------------------------------------------------------------------------- ----------------------------
Total 401 451 354 460 416 466 488 468 474
=========================================================================================== ============================
Percentage Utilization 81% 94% 79% 93% 87% 97% 101% 100% 99%
- ------------------------------------------------------------------------------------------- ----------------------------
U.S. Gulf Coast
Crude Oil 648 669 675 652 661 668 702 708 693
Other Feed and Blending Stocks 116 96 90 101 101 103 95 95 98
- ------------------------------------------------------------------------------------------- ----------------------------
Total 764 765 765 753 762 771 797 803 791
=========================================================================================== ============================
Percentage Utilization 91% 94% 94% 91% 93% 93% 98% 99% 97%
- ------------------------------------------------------------------------------------------- ----------------------------
Central U.S.
Crude Oil 568 664 624 633 622 631 663 618 637
Other Feed and Blending Stocks 25 23 22 46 29 32 24 33 30
- ------------------------------------------------------------------------------------------- ----------------------------
Total 593 687 646 679 651 663 687 651 667
=========================================================================================== ============================
Percentage Utilization 85% 96% 91% 92% 91% 92% 96% 90% 93%
- ------------------------------------------------------------------------------------------- ----------------------------
Western U.S.
Crude Oil 306 320 330 320 319 294 328 329 317
Other Feed and Blending Stocks (3) 16 13 16 11 9 13 12 11
- ------------------------------------------------------------------------------------------- ----------------------------
Total 303 336 343 336 330 303 341 341 328
=========================================================================================== ============================
Percentage Utilization 92% 96% 99% 96% 96% 88% 99% 99% 95%
- ------------------------------------------------------------------------------------------- ----------------------------
Total U.S.
Crude Oil 1,870 2,057 1,967 2,004 1,975 2,008 2,128 2,083 2,073
Other Feed and Blending Stocks 191 182 141 224 184 195 185 180 187
- ------------------------------------------------------------------------------------------- ----------------------------
Total 2,061 2,239 2,108 2,228 2,159 2,203 2,313 2,263 2,260
=========================================================================================== ============================
Percentage Utilization 87% 95% 91% 93% 92% 93% 98% 96% 96%
- ------------------------------------------------------------------------------------------- ----------------------------
United Kingdom and Ireland
Crude Oil 279 260 273 177 247 262 244 258 255
Other Feed and Blending Stocks 18 27 43 30 30 39 42 38 39
- ------------------------------------------------------------------------------------------- ----------------------------
Total 297 287 316 207 277 301 286 296 294
=========================================================================================== ============================
Percentage Utilization 92% 86% 90% 58% 81% 86% 80% 84% 83%
- ------------------------------------------------------------------------------------------- ----------------------------
Equity Affiliates -- Net Share -- International*
Crude Oil 119 127 127 130 126 134 132 129 132
Other Feed and Blending Stocks 4 6 4 3 4 2 3 5 3
- ------------------------------------------------------------------------------------------- ----------------------------
Total 123 133 131 133 130 136 135 134 135
=========================================================================================== ============================
Percentage Utilization 88% 93% 93% 94% 92% 98% 97% 95% 97%
- ------------------------------------------------------------------------------------------- ----------------------------
* Represents 18.75 percent interest in a refinery complex at Karlsruhe, Germany; 16.33 percent interest in two
refineries in Kralupy and Litvinov, Czech Republic;
and 47 percent interest in a refinery at Melaka, Malaysia.
Worldwide -- Including Net Share of Equity Affiliates
Crude Oil 2,268 2,444 2,367 2,311 2,348 2,404 2,504 2,470 2,460
Other Feed and Blending Stocks 213 215 188 257 218 236 230 223 229
- ------------------------------------------------------------------------------------------- ----------------------------
Total 2,481 2,659 2,555 2,568 2,566 2,640 2,734 2,693 2,689
=========================================================================================== ============================
Percentage Utilization 88% 94% 91% 89% 90% 92% 96% 95% 94%
- ------------------------------------------------------------------------------------------- ----------------------------
U.S. Petroleum Products Sales (MB/D)
Gasoline 1,375 1,461 1,417 1,478 1,433 1,331 1,381 1,398 1,370
Distillates 653 650 602 692 649 600 590 580 590
Aviation Fuel 231 259 268 172 232 164 164 197 176
Other 524 479 456 403 465 509 493 497 499
- ------------------------------------------------------------------------------------------- ----------------------------
Total 2,783 2,849 2,743 2,745 2,780 2,604 2,628 2,672 2,635
=========================================================================================== ============================
Note: Pro forma information derived by summing the historical Phillips and Conoco data for the
period indicated.
Page 13 of 13