UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):   August 4, 2022
ConocoPhillips
(Exact name of registrant as specified in its charter)
Delaware
001-32395
01-0562944
(State or other jurisdiction of
(Commission
(I.R.S. Employer
incorporation)
File Number)
Identification No.)
925 N. Eldridge Parkway
Houston, Texas 77079
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code:  (281) 293-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:

Title of each class
  Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, $.01 Par Value
  COP
  New York Stock Exchange
7% Debentures due 2029
  CUSIP-718507BK1
  New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1


Item 2.02 Results of Operations and Financial Condition.
 
On August 4, 2022 ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.  Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
 

 
Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits
 
      Exhibit No.             Description
 
 
99.1
Press release issued by ConocoPhillips on August 4, 2022.
 
 
 
 
 
99.2
Supplemental financial information.
 
 
 
 
 
104
Cover Page Interactive Data File (formatted as Inline XBRL and filed herewith).


2


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

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


3
Exhibit 99.1

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

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

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

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

Second-Quarter Highlights and Recent Announcements

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

Quarterly Dividend and Variable Return of Cash

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

Second-Quarter Review

Production for the second quarter of 2022 was 1,692 thousand barrels of oil equivalent per day (MBOED), an increase of 104 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions and the conversion of previously acquired Concho contracted volumes from a two-stream to a three-stream basis, second-quarter 2022 production decreased by 69 MBOED or 4% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline; however, production was lower overall primarily due to planned and unplanned downtime.

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

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

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

Six-Month Review

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

Production for the first six months of 2022 was 1,720 MBOED, an increase of 162 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, the conversion of previously acquired Concho contracted volumes from a two-stream to a three-stream basis, and 2021 Winter Storm Uri impacts, production decreased 53 MBOED or 3% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline; however, production was lower overall primarily due to planned and unplanned downtime.

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

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


Outlook

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

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

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

--- # # # ---

About ConocoPhillips

ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $94 billion of total assets and approximately 9,400 employees at June 30, 2022. Production averaged 1,720 MBOED for the six months ended June 30, 2022, and proved reserves were 6.1 BBOE as of Dec. 31, 2021. For more information, go to www.conocophillips.com.


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

This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, plans and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as “anticipate," “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict," “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, including pandemics (such as COVID-19) and epidemics and any related company or government policies or actions; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from any ongoing military conflict, including the conflict between Russia and Ukraine and the global response to it, or from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; insufficient liquidity or other factors, such as those listed herein, that could impact our ability to repurchase shares and declare and pay dividends such that we suspend our share repurchase program and reduce, suspend, or totally eliminate dividend payments in the future, whether variable or fixed; changes in expected levels of oil and gas reserves or production; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks or unsuccessful exploratory activities; unexpected cost increases, inflationary pressures or technical difficulties in constructing, maintaining or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business, including any sanctions imposed as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to complete any announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for any announced or any future dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of the transactions or our remaining business; business disruptions following the acquisition of assets from Shell (the “Shell Acquisition”) or any other announced or any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related directly or indirectly to our transaction with Concho Resources Inc.; the impact of competition and consolidation in the oil and gas industry; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions or developments, including as a result of any ongoing military conflict, including the conflict between Russia and Ukraine; the ability to successfully integrate the assets from the Shell Acquisition or achieve the anticipated benefits from the transaction; unanticipated difficulties or expenditures relating to the Shell Acquisition; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from accidents, extraordinary weather events, civil unrest, political events, war, terrorism, cyber attacks or information technology failures, constraints or disruptions; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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


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

The company believes that the non-GAAP measure adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. Adjusted operating costs is defined as the sum of production and operating expenses, selling, general and administrative expenses, exploration general and administrative expenses, geological and geophysical, lease rentals and other exploration expenses, adjusted to exclude expenses that do not directly relate to the company’s core business operations and are included as adjustments to arrive at adjusted earnings to the extent those adjustments impact operating costs. Adjusted corporate segment net loss is defined as corporate and other segment earnings adjusted for special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

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

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

Other Terms This news release also contains the term pro forma underlying production. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of June 30, 2022. The impact of closed dispositions assume they closed January 1, 2021, while the 2021 impact of the closed Shell Permian acquisition and the additional 10% APLNG interest acquisition assume they closed January 1, 2021 and February 1, 2021, respectively. The company believes that underlying production is useful to investors to compare production reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies. Return of capital is defined as the total of the ordinary dividend, share repurchases and variable return of cash (VROC).

References in the release to earnings refer to net income.
























 

ConocoPhillips

Table 1: Reconciliation of earnings to adjusted earnings

$ Millions, Except as Indicated























 



2Q22


2Q21


2022 YTD
2021 YTD



Pre-
tax
Income
tax
After-
tax
Per
share
of
common
stock
(dollars)

Pre-
tax
Income
tax
After-
tax
Per
share
of
common
stock
(dollars)

Pre-
tax
Income
tax
After-
tax
Per
share
of
common
stock
(dollars)

Pre-
tax
Income
tax
After-
tax
Per
share
of
common
stock
(dollars)


Earnings


$

5,145

 

3.96

 




2,091

 

1.55

 




10,904

 

8.36

 




3,073

 

2.31

 



Adjustments:





















Net gain on asset sales

(254

)

57

 

 

(197

)

(0.15

)


(68

)

16

 

(52

)

(0.04

)


(1,017

)

110

 

(907

)

(0.70

)


(268

)

22

 

(246

)

(0.19

)



(Gain) loss on debt extinguishment and exchange fees

83

 

(13

)

 

70

 

0.05

 


-

 

-

 

-

 

-

 


(44

)

52

 

8

 

0.01

 


-

 

-

 

-

 

-

 



Tax adjustments

-

 

58

 

 

58

 

0.04

 


-

 

-

 

-

 

-

 


-

 

(407

)

(407

)

(0.32

)


-

 

75

 

75

 

0.06

 



Transaction and restructuring expenses

14

 

(4

)

 

10

 

0.01

 


23

 

(5

)

18

 

0.01

 


28

 

(8

)

20

 

0.02

 


314

 

(53

)

261

 

0.20

 



(Gain) loss on CVE shares

-

 

-

 

 

-

 

-

 


(418

)

-

 

(418

)

(0.30

)


(251

)

-

 

(251

)

(0.20

)


(726

)

-

 

(726

)

(0.55

)



Pension settlement expense

-

 

-

 

 

-

 

-

 


42

 

(9

)

33

 

0.02

 


-

 

-

 

-

 

-

 


42

 

(9

)

33

 

0.02

 



Pending claims and settlements

-

 

-

 

 

-

 

-

 


48

 

(10

)

38

 

0.03

 


-

 

-

 

-

 

-

 


48

 

(10

)

38

 

0.03

 



(Gain) loss on FX derivative

-

 

-

 

 

-

 

-

 


8

 

(2

)

6

 

-

 


10

 

(2

)

8

 

0.01

 


12

 

(3

)

9

 

0.01

 



Net loss on accelerated settlement of Concho hedging program

-

 

-

 

 

-

 

-

 


-

 

-

 

-

 

-

 


-

 

-

 

-

 

-

 


132

 

(31

)

101

 

0.08

 



Adjusted earnings / (loss)


$

5,086

 

3.91

 




1,716

 

1.27

 




9,375

 

7.18

 




2,618

 

1.97

 
























 

The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides.


ConocoPhillips

Table 2: Reconciliation of reported production to pro forma underlying production


In MBOED, Except as Indicated







 


2Q22

2Q21


2022 YTD 2021 YTD

Total Reported ConocoPhillips Production

1,692

 

1,588

 


1,720

 

1,558

 









 

Closed Dispositions1

-

 

(77

)


(22

)

(77

)



Closed Acquisitions 2

-

 

210

 


-

 

205

 



Total Pro Forma Underlying Production

1,692

 

1,721

 


1,698

 

1,686

 









 

Estimated Downtime from Winter Storm Uri3

-

 

-

 


-

 

25

 



Estimated Uplift from 2 to 3 stream conversion4

(40

)

-

 


(40

)

-

 









 

1Includes production related to the completed Indonesia disposition and various Lower 48 dispositions.

2Includes production related to the acquisition of Shell's Permian assets as well as the additional 10% shareholding interest in APLNG. 2021 has been pro forma adjusted for these acquisitions and assumes 180 MBOED for the Shell Permian assets.

3Estimated production impacts from Winter Storm Uri, which are excluded from Total Reported Production and Total Pro Forma Underlying Production.

4Estimated production impacts from the conversion of Concho two-stream contracted volumes to a three-stream (crude oil, natural gas and natural gas liquids) reporting basis, which are included in Total Reported Production and Total Pro Forma Underlying Production.







 


ConocoPhillips




Table 3: Reconciliation of net cash provided by operating activities to cash from operations

$ Millions, Except as Indicated







 


2Q22


2022 YTD

Net Cash Provided by Operating Activities

7,914


12,982

 







 

Adjustments:




Net operating working capital changes

80


(1,877

)



Cash from operations

7,834


14,859

 







 

ConocoPhillips



Table 4: Reconciliation of production and operating expenses to adjusted operating costs

$ Millions, Except as Indicated






 


2022 FY
Guidance



Production and operating expenses ~6,800


Adjustments:



Selling, general and administrative (G&A) expenses ~500


Exploration G&A, G&G and lease rentals ~250


Operating Costs ~7,550





 

Adjustments to exclude special items:



Transaction and restructuring expenses ~(50)


Adjusted Operating Costs ~7,500





 




 




 

ConocoPhillips



Table 5: Reconciliation of adjusted corporate segment net loss


$ Millions, Except as Indicated






 


2022 FY
Guidance






 

Corporate and Other earnings ~(250)





 

Adjustments to exclude special items:



(Gain) loss on CVE shares ~(250)


(Gain) loss on FX derivative ~10


Debt extinguishment and exchange fees ~(45)


Income tax on special items ~(365)


Adjusted corporate segment net loss ~(900)





 

 

Contacts

Dennis Nuss (media)
281-293-1149
dennis.nuss@conocophillips.com

Investor Relations
281-293-5000
investor.relations@conocophillips.com

Exhibit 99.2

 
Second-Quarter 2022 Detailed Supplemental Information
 
                                                     
                                                     
   
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
$ Millions, Except as Indicated
                                                   
CONSOLIDATED INCOME STATEMENT
                                                   
                                                     
Revenues and Other Income
                                                   
  Sales and other operating revenues
   
9,826
     
9,556
     
11,326
     
15,120
     
45,828
     
17,762
     
21,161
         
38,923
 
  Equity in earnings of affiliates
   
122
     
139
     
239
     
332
     
832
     
426
     
524
         
950
 
  Gain on dispositions
   
233
     
59
     
2
     
192
     
486
     
817
     
262
         
1,079
 
  Other income
   
378
     
457
     
49
     
319
     
1,203
     
286
     
42
         
328
 
    Total Revenues and Other Income
   
10,559
     
10,211
     
11,616
     
15,963
     
48,349
     
19,291
     
21,989
         
41,280
 
                                                                     
Costs and Expenses
                                                                   
  Purchased commodities
   
4,483
     
2,998
     
4,179
     
6,498
     
18,158
     
6,751
     
9,234
         
15,985
 
  Production and operating expenses
   
1,383
     
1,379
     
1,389
     
1,543
     
5,694
     
1,581
     
1,741
         
3,322
 
  Selling, general and administrative expenses
   
311
     
117
     
128
     
163
     
719
     
187
     
96
         
283
 
  Exploration expenses
   
84
     
57
     
65
     
138
     
344
     
69
     
143
         
212
 
  Depreciation, depletion and amortization
   
1,886
     
1,867
     
1,672
     
1,783
     
7,208
     
1,823
     
1,810
         
3,633
 
  Impairments
   
(3
)
   
2
     
(89
)
   
764
     
674
     
2
     
2
         
4
 
  Taxes other than income taxes
   
370
     
381
     
403
     
480
     
1,634
     
814
     
1,020
         
1,834
 
  Accretion on discounted liabilities
   
62
     
63
     
61
     
56
     
242
     
61
     
61
         
122
 
  Interest and debt expense
   
226
     
220
     
219
     
219
     
884
     
217
     
211
         
428
 
  Foreign currency transactions (gain) loss
   
19
     
10
     
(10
)
   
(41
)
   
(22
)
   
24
     
(70
)
       
(46
)
  Other expenses
   
24
     
37
     
17
     
24
     
102
     
(136
)
   
86
         
(50
)
    Total Costs and Expenses
   
8,845
     
7,131
     
8,034
     
11,627
     
35,637
     
11,393
     
14,334
         
25,727
 
Income before income taxes
   
1,714
     
3,080
     
3,582
     
4,336
     
12,712
     
7,898
     
7,655
         
15,553
 
  Income tax provision
   
732
     
989
     
1,203
     
1,709
     
4,633
     
2,139
     
2,510
         
4,649
 
Net Income
   
982
     
2,091
     
2,379
     
2,627
     
8,079
     
5,759
     
5,145
         
10,904
 
                                                                     
Net Income Per Share of Common Stock (dollars)
                                                                   
  Basic
   
0.75
     
1.55
     
1.78
     
1.99
     
6.09
     
4.41
     
3.98
         
8.39
 
  Diluted
   
0.75
     
1.55
     
1.78
     
1.98
     
6.07
     
4.39
     
3.96
         
8.36
 
                                                                     
Average Common Shares Outstanding (in thousands)*
                                                             
  Basic
   
1,300,375
     
1,348,637
     
1,332,286
     
1,315,225
     
1,324,194
     
1,301,930
     
1,289,791
         
1,295,827
 
  Diluted
   
1,302,691
     
1,353,201
     
1,336,379
     
1,320,829
     
1,328,151
     
1,307,404
     
1,295,844
         
1,301,126
 
*Ending Common Shares Outstanding is 1,273,033 as of June 30, 2022, compared with 1,293,450 as of March 31, 2022.
             
                                                                     
                                                                     
INCOME (LOSS) BEFORE INCOME TAXES
                                                                   
                                                                     
Alaska
   
217
     
480
     
517
     
574
     
1,788
     
802
     
983
         
1,785
 
                                                                     
Lower 48
   
609
     
1,502
     
2,094
     
2,117
     
6,322
     
3,547
     
4,456
         
8,003
 
                                                                     
Canada
   
16
     
135
     
205
     
252
     
608
     
381
     
418
         
799
 
                                                                     
Europe, Middle East and North Africa
   
511
     
697
     
878
     
1,624
     
3,710
     
1,774
     
1,533
         
3,307
 
                                                                     
Asia Pacific
   
432
     
289
     
377
     
(162
)
   
936
     
1,310
     
637
         
1,947
 
                                                                     
Other International
   
(5
)
   
(6
)
   
(140
)
   
(9
)
   
(160
)
   
-
     
-
         
-
 
                                                                     
Corporate and Other
   
(66
)
   
(17
)
   
(349
)
   
(60
)
   
(492
)
   
84
     
(372
)
       
(288
)
                                                                     
Consolidated
   
1,714
     
3,080
     
3,582
     
4,336
     
12,712
     
7,898
     
7,655
         
15,553
 
                                                                     
                                                                     
                                                                     
                                                                     
EFFECTIVE INCOME TAX RATES
                                                                   
                                                                     
Alaska*
   
26.8
%
   
22.8
%
   
21.6
%
   
21.4
%
   
22.5
%
   
27.1
%
   
30.1
%
       
28.8
%
                                                                     
Lower 48
   
23.2
%
   
21.7
%
   
22.1
%
   
21.7
%
   
22.0
%
   
21.4
%
   
19.6
%
       
20.4
%
                                                                     
Canada
   
33.7
%
   
24.9
%
   
24.4
%
   
24.2
%
   
24.7
%
   
23.7
%
   
24.3
%
       
24.0
%
                                                                     
Europe, Middle East and North Africa
   
70.1
%
   
70.3
%
   
72.5
%
   
65.2
%
   
68.5
%
   
76.8
%
   
74.9
%
       
75.9
%
                                                                     
Asia Pacific
   
26.6
%
   
39.4
%
   
31.9
%
   
-82.9
%
   
51.6
%
   
13.3
%
   
17.7
%
       
14.7
%
                                                                     
Other International
   
28.0
%
   
7.6
%
   
30.4
%
   
91.6
%
   
33.0
%
   
-137.8
%
   
43.0
%
       
14.9
%
                                                                     
Corporate and Other
   
-85.1
%
   
496.6
%
   
38.9
%
   
198.2
%
   
57.3
%
   
-546.2
%
   
6.2
%
       
168.6
%
                                                                     
Consolidated
   
42.7
%
   
32.1
%
   
33.6
%
   
39.4
%
   
36.4
%
   
27.1
%
   
32.8
%
       
29.9
%
*Alaska including taxes other than income taxes.
   
50.3
%
   
38.8
%
   
36.0
%
   
37.9
%
   
39.3
%
   
47.8
%
   
52.1
%
       
50.2
%


 
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
$ Millions
                                                   
EARNINGS BY SEGMENT
                                                   
                                                     
Alaska
   
159
     
371
     
405
     
451
     
1,386
     
584
     
687
         
1,271
 
                                                                     
Lower 48
   
468
     
1,175
     
1,631
     
1,658
     
4,932
     
2,790
     
3,581
         
6,371
 
                                                                     
Canada
   
10
     
102
     
155
     
191
     
458
     
291
     
316
         
607
 
                                                                     
Europe, Middle East and North Africa
   
153
     
207
     
241
     
566
     
1,167
     
412
     
385
         
797
 
                                                                     
Asia Pacific
   
317
     
175
     
257
     
(296
)
   
453
     
1,136
     
525
         
1,661
 
                                                                     
Other International
   
(4
)
   
(5
)
   
(97
)
   
(1
)
   
(107
)
   
-
     
-
         
-
 
                                                                     
Corporate and Other
   
(121
)
   
66
     
(213
)
   
58
     
(210
)
   
546
     
(349
)
       
197
 
                                                                     
Consolidated
   
982
     
2,091
     
2,379
     
2,627
     
8,079
     
5,759
     
5,145
         
10,904
 
                                                                     
                                                                     
                                                                     
                                                                     
                                                                     
SPECIAL ITEMS
                                                                   
                                                                     
Alaska
   
(20
)
   
(2
)
   
(1
)
   
3
     
(20
)
   
23
     
-
         
23
 
                                                                     
Lower 48
   
(236
)
   
(10
)
   
56
     
(109
)
   
(299
)
   
16
     
69
         
85
 
                                                                     
Canada
   
(3
)
   
52
     
77
     
97
     
223
     
176
     
118
         
294
 
                                                                     
Europe, Middle East and North Africa
   
-
     
-
     
(5
)
   
-
     
(5
)
   
-
     
(58
)
       
(58
)
                                                                     
Asia Pacific
   
199
     
-
     
-
     
(688
)
   
(489
)
   
534
     
-
         
534
 
                                                                     
Other International
   
-
     
-
     
(105
)
   
(3
)
   
(108
)
   
-
     
-
         
-
 
                                                                     
Corporate and Other
   
140
     
335
     
(15
)
   
317
     
777
     
721
     
(70
)
       
651
 
                                                                     
Consolidated
   
80
     
375
     
7
     
(383
)
   
79
     
1,470
     
59
         
1,529
 
Detailed reconciliation of these items is provided on page 3.
                                                             
                                                                     
                                                                     
                                                                     
                                                                     
ADJUSTED EARNINGS
                                                                   
                                                                     
Alaska
   
179
     
373
     
406
     
448
     
1,406
     
561
     
687
         
1,248
 
                                                                     
Lower 48
   
704
     
1,185
     
1,575
     
1,767
     
5,231
     
2,774
     
3,512
         
6,286
 
                                                                     
Canada
   
13
     
50
     
78
     
94
     
235
     
115
     
198
         
313
 
                                                                     
Europe, Middle East and North Africa
   
153
     
207
     
246
     
566
     
1,172
     
412
     
443
         
855
 
                                                                     
Asia Pacific
   
118
     
175
     
257
     
392
     
942
     
602
     
525
         
1,127
 
                                                                     
Other International
   
(4
)
   
(5
)
   
8
     
2
     
1
     
-
     
-
         
-
 
                                                                     
Corporate and Other
   
(261
)
   
(269
)
   
(198
)
   
(259
)
   
(987
)
   
(175
)
   
(279
)
       
(454
)
                                                                     
Consolidated
   
902
     
1,716
     
2,372
     
3,010
     
8,000
     
4,289
     
5,086
         
9,375
 
                                                                     
                                                                     
                                                                     
                                                                     
                                                                     
ADJUSTED EFFECTIVE INCOME TAX RATES
                                                                   
                                                                     
Alaska
   
26.4
%
   
22.7
%
   
21.7
%
   
22.4
%
   
22.8
%
   
30.0
%
   
30.1
%
       
30.1
%
                                                                     
Lower 48
   
23.3
%
   
21.7
%
   
22.0
%
   
21.8
%
   
22.1
%
   
22.1
%
   
19.6
%
       
20.7
%
                                                                     
Canada
   
28.3
%
   
26.2
%
   
25.7
%
   
25.3
%
   
25.8
%
   
24.4
%
   
25.1
%
       
24.8
%
                                                                     
Europe, Middle East and North Africa
   
70.2
%
   
70.3
%
   
72.7
%
   
65.2
%
   
68.6
%
   
76.8
%
   
71.1
%
       
74.1
%
                                                                     
Asia Pacific
   
49.3
%
   
39.4
%
   
31.9
%
   
25.5
%
   
33.9
%
   
22.4
%
   
17.7
%
       
20.3
%
                                                                     
Other International
   
28.0
%
   
7.6
%
   
-7.1
%
   
143.6
%
   
107.8
%
   
-137.8
%
   
43.0
%
       
14.9
%
                                                                     
Corporate and Other
   
8.1
%
   
18.7
%
   
38.9
%
   
25.1
%
   
23.1
%
   
38.1
%
   
3.4
%
       
20.6
%
                                                                     
Consolidated
   
44.8
%
   
36.8
%
   
34.2
%
   
36.8
%
   
37.1
%
   
36.8
%
   
32.2
%
       
34.4
%


 
2021
   
2022
 
$ Millions
 
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
DETAILED SPECIAL ITEMS
                                                   
                                                     
Alaska
                                                   
Transaction and restructuring expenses
   
(26
)
   
(2
)
   
(1
)
   
(4
)
   
(33
)
   
-
     
-
         
-
 
   Subtotal before income taxes
   
(26
)
   
(2
)
   
(1
)
   
(4
)
   
(33
)
   
-
     
-
         
-
 
Income tax provision (benefit)1
   
(6
)
   
-
     
-
     
(7
)
   
(13
)
   
(23
)
   
-
         
(23
)
  Total
   
(20
)
   
(2
)
   
(1
)
   
3
     
(20
)
   
23
     
-
         
23
 
                                                                     
Lower 48
                                                                   
Transaction and restructuring expenses
   
(175
)
   
(13
)
   
(15
)
   
(57
)
   
(260
)
   
(14
)
   
(14
)
       
(28
)
Gain (loss) on accelerated settlement of Concho hedging program
   
(132
)
   
-
     
-
     
-
     
(132
)
   
-
     
-
         
-
 
Impairments
   
-
     
-
     
89
     
(85
)
   
4
     
-
     
-
         
-
 
Gain (loss) on asset sales
   
-
     
-
     
-
     
-
     
-
     
-
     
101
         
101
 
   Subtotal before income taxes
   
(307
)
   
(13
)
   
74
     
(142
)
   
(388
)
   
(14
)
   
87
         
73
 
Income tax provision (benefit)2
   
(71
)
   
(3
)
   
18
     
(33
)
   
(89
)
   
(30
)
   
18
         
(12
)
  Total
   
(236
)
   
(10
)
   
56
     
(109
)
   
(299
)
   
16
     
69
         
85
 
                                                                     
Canada
                                                                   
Gain (loss) on asset sales
   
-
     
68
     
100
     
126
     
294
     
229
     
153
         
382
 
Transaction and restructuring expenses
   
(3
)
   
-
     
-
     
-
     
(3
)
   
-
     
-
         
-
 
   Subtotal before income taxes
   
(3
)
   
68
     
100
     
126
     
291
     
229
     
153
         
382
 
Income tax provision (benefit)
   
-
     
16
     
23
     
29
     
68
     
53
     
35
         
88
 
  Total
   
(3
)
   
52
     
77
     
97
     
223
     
176
     
118
         
294
 
                                                                     
Europe, Middle East and North Africa
                                                                   
Transaction and restructuring expenses
   
(1
)
   
-
     
(24
)
   
-
     
(25
)
   
-
     
-
         
-
 
   Subtotal before income taxes
   
(1
)
   
-
     
(24
)
   
-
     
(25
)
   
-
     
-
         
-
 
Income tax provision (benefit)4
   
(1
)
   
-
     
(19
)
   
-
     
(20
)
   
-
     
58
         
58
 
  Total
   
-
     
-
     
(5
)
   
-
     
(5
)
   
-
     
(58
)
       
(58
)
                                                                     
Asia Pacific
                                                                   
Gain (loss) on asset sales
   
200
     
-
     
-
     
-
     
200
     
534
     
-
         
534
 
Impairments
   
-
     
-
     
-
     
(688
)
   
(688
)
   
-
     
-
         
-
 
Transaction and restructuring expenses
   
(1
)
   
-
     
-
     
-
     
(1
)
   
-
     
-
         
-
 
   Subtotal before income taxes
   
199
     
-
     
-
     
(688
)
   
(489
)
   
534
     
-
         
534
 
Income tax provision (benefit)
   
-
     
-
     
-
     
-
     
-
     
-
     
-
         
-
 
  Total
   
199
     
-
     
-
     
(688
)
   
(489
)
   
534
     
-
         
534
 
                                                                     
Other International
                                                                   
Gain (loss) on asset sales
   
-
     
-
     
(147
)
   
-
     
(147
)
   
-
     
-
         
-
 
Transaction and restructuring expenses
   
-
     
-
     
-
     
(4
)
   
(4
)
   
-
     
-
         
-
 
   Subtotal before income taxes
   
-
     
-
     
(147
)
   
(4
)
   
(151
)
   
-
     
-
         
-
 
Income tax provision (benefit)
   
-
     
-
     
(42
)
   
(1
)
   
(43
)
   
-
     
-
         
-
 
  Total
   
-
     
-
     
(105
)
   
(3
)
   
(108
)
   
-
     
-
         
-
 
                                                                     
Corporate and Other
                                                                   
Pension settlement expense
   
-
     
(42
)
   
(28
)
   
(29
)
   
(99
)
   
-
     
-
         
-
 
Pending claims and settlements
   
-
     
(48
)
   
-
     
-
     
(48
)
   
-
     
-
         
-
 
Transaction and restructuring expense
   
(85
)
   
(8
)
   
(12
)
   
(4
)
   
(109
)
   
-
     
-
         
-
 
Gain (loss) on investment in Cenovus Energy
   
308
     
418
     
17
     
297
     
1,040
     
251
     
-
         
251
 
Gain (loss) on CAD FX derivative
   
(4
)
   
(8
)
   
-
     
-
     
(12
)
   
-
     
-
         
-
 
Gain (loss) on AUD FX derivative
   
-
     
-
     
-
     
21
     
21
     
(10
)
   
-
         
(10
)
Gain (loss) on debt extinguishment and exchange fees
   
-
     
-
     
-
     
-
     
-
     
127
     
(83
)
       
44
 
   Subtotal before income taxes
   
219
     
312
     
(23
)
   
285
     
793
     
368
     
(83
)
       
285
 
Income tax provision (benefit)3
   
79
     
(23
)
   
(8
)
   
(32
)
   
16
     
(353
)
   
(13
)
       
(366
)
  Total
   
140
     
335
     
(15
)
   
317
     
777
     
721
     
(70
)
       
651
 
                                                                     
Total Company
   
80
     
375
     
7
     
(383
)
   
79
     
1,470
     
59
         
1,529
 
1Includes a tax adjustment in Q1 2022 related to the closure of an audit.
                                                     
2Includes a tax adjustment in Q1 2022 related to the closure of an audit.
                                                     
3Includes deferred tax adjustment related to foreign tax credits in Q1 2021; Q4 2021 and Q1 2022 tax adjustment related to Indonesia disposition; Q1 2022 tax adjustments including the closure of an audit.
 
4Includes Norway tax reform for Q2 2022.
                                                                   


 
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
$ Millions
                                                   
CONSOLIDATED BALANCE SHEET
                                                   
                                                     
Assets
                                                   
  Cash and cash equivalents
   
2,831
     
6,608
     
9,833
     
5,028
     
5,028
     
6,414
     
6,909
         
6,909
 
  Short-term investments
   
4,104
     
2,251
     
678
     
446
     
446
     
730
     
1,272
         
1,272
 
  Accounts and notes receivable
   
4,339
     
4,401
     
5,336
     
6,543
     
6,543
     
7,807
     
8,081
         
8,081
 
  Accounts and notes receivable—related parties
   
142
     
123
     
129
     
127
     
127
     
72
     
72
         
72
 
  Investment in Cenovus Energy
   
1,564
     
1,802
     
1,416
     
1,117
     
1,117
     
-
     
-
         
-
 
  Inventories
   
1,098
     
1,138
     
1,043
     
1,208
     
1,208
     
1,174
     
1,234
         
1,234
 
  Prepaid expenses and other current assets
   
536
     
849
     
1,746
     
1,581
     
1,581
     
1,389
     
1,292
         
1,292
 
       Total Current Assets
   
14,614
     
17,172
     
20,181
     
16,050
     
16,050
     
17,586
     
18,860
         
18,860
 
  Investments and long-term receivables
   
8,286
     
8,013
     
8,058
     
7,113
     
7,113
     
8,309
     
8,203
         
8,203
 
  Loans and advances—related parties
   
59
     
59
     
-
     
-
     
-
     
-
     
-
         
-
 
  Net properties, plants and equipment
   
58,270
     
57,717
     
56,689
     
64,911
     
64,911
     
64,642
     
64,008
         
64,008
 
  Other assets
   
2,464
     
2,442
     
2,376
     
2,587
     
2,587
     
2,771
     
2,622
         
2,622
 
Total Assets
   
83,693
     
85,403
     
87,304
     
90,661
     
90,661
     
93,308
     
93,693
         
93,693
 
                                                                     
Liabilities
                                                                   
  Accounts payable
   
3,779
     
3,591
     
4,101
     
5,002
     
5,002
     
4,875
     
5,845
         
5,845
 
  Accounts payable—related parties
   
22
     
22
     
30
     
23
     
23
     
22
     
28
         
28
 
  Short-term debt
   
689
     
1,205
     
920
     
1,200
     
1,200
     
1,160
     
676
         
676
 
  Accrued income and other taxes
   
959
     
1,406
     
2,082
     
2,862
     
2,862
     
3,162
     
2,759
         
2,759
 
  Employee benefit obligations
   
567
     
571
     
691
     
755
     
755
     
446
     
529
         
529
 
  Other accruals
   
1,168
     
1,355
     
2,625
     
2,179
     
2,179
     
1,959
     
2,379
         
2,379
 
       Total Current Liabilities
   
7,184
     
8,150
     
10,449
     
12,021
     
12,021
     
11,624
     
12,216
         
12,216
 
  Long-term debt
   
19,338
     
18,805
     
18,748
     
18,734
     
18,734
     
17,586
     
16,295
         
16,295
 
  Asset retirement obligations and accrued environmental costs
   
5,782
     
5,819
     
5,721
     
5,754
     
5,754
     
5,815
     
5,737
         
5,737
 
  Deferred income taxes
   
4,982
     
5,331
     
5,630
     
6,179
     
6,179
     
6,556
     
6,694
         
6,694
 
  Employee benefit obligations
   
1,530
     
1,297
     
1,162
     
1,153
     
1,153
     
1,085
     
1,080
         
1,080
 
  Other liabilities and deferred credits
   
1,722
     
1,725
     
1,479
     
1,414
     
1,414
     
1,424
     
1,469
         
1,469
 
Total Liabilities
   
40,538
     
41,127
     
43,189
     
45,255
     
45,255
     
44,090
     
43,491
         
43,491
 
                                                                     
Equity
                                                                   
  Common stock issued
                                                                   
    Par value
   
21
     
21
     
21
     
21
     
21
     
21
     
21
         
21
 
    Capital in excess of par
   
60,278
     
60,337
     
60,431
     
60,581
     
60,581
     
60,907
     
61,045
         
61,045
 
  Treasury stock
   
(47,672
)
   
(48,278
)
   
(49,521
)
   
(50,920
)
   
(50,920
)
   
(52,344
)
   
(54,644
)
       
(54,644
)
  Accumulated other comprehensive loss
   
(5,080
)
   
(4,920
)
   
(5,123
)
   
(4,950
)
   
(4,950
)
   
(4,808
)
   
(5,313
)
       
(5,313
)
  Retained earnings
   
35,608
     
37,116
     
38,307
     
40,674
     
40,674
     
45,442
     
49,093
         
49,093
 
Total Equity
   
43,155
     
44,276
     
44,115
     
45,406
     
45,406
     
49,218
     
50,202
         
50,202
 
Total Liabilities and Equity
   
83,693
     
85,403
     
87,304
     
90,661
     
90,661
     
93,308
     
93,693
         
93,693
 


 
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
$ Millions
                                                   
CASH FLOW INFORMATION
                                                   
                                                     
Cash Flows from Operating Activities
                                                   
  Net income (loss)
   
982
     
2,091
     
2,379
     
2,627
     
8,079
     
5,759
     
5,145
         
10,904
 
  Depreciation, depletion and amortization
   
1,886
     
1,867
     
1,672
     
1,783
     
7,208
     
1,823
     
1,810
         
3,633
 
  Impairments
   
(3
)
   
2
     
(89
)
   
764
     
674
     
2
     
2
         
4
 
  Dry hole costs and leasehold impairments
   
6
     
1
     
-
     
37
     
44
     
7
     
97
         
104
 
  Accretion on discounted liabilities
   
62
     
63
     
61
     
56
     
242
     
61
     
61
         
122
 
  Deferred taxes
   
203
     
364
     
328
     
451
     
1,346
     
373
     
495
         
868
 
  Undistributed equity earnings
   
81
     
236
     
(59
)
   
188
     
446
     
220
     
371
         
591
 
  Gain on dispositions
   
(233
)
   
(59
)
   
(2
)
   
(192
)
   
(486
)
   
(817
)
   
(262
)
       
(1,079
)
  Gain on investment in Cenovus Energy
   
(308
)
   
(418
)
   
(17
)
   
(297
)
   
(1,040
)
   
(251
)
   
-
         
(251
)
  Other
   
(581
)
   
(107
)
   
(178
)
   
78
     
(788
)
   
(152
)
   
115
         
(37
)
  Net working capital changes
   
(15
)
   
211
     
702
     
373
     
1,271
     
(1,957
)
   
80
         
(1,877
)
Net Cash Provided by Operating Activities
   
2,080
     
4,251
     
4,797
     
5,868
     
16,996
     
5,068
     
7,914
         
12,982
 
                                                                     
Cash Flows from Investing Activities
                                                                   
  Capital expenditures and investments
   
(1,200
)
   
(1,265
)
   
(1,302
)
   
(1,557
)
   
(5,324
)
   
(3,161
)
   
(1,968
)
       
(5,129
)
  Working capital changes associated with investing activities
   
61
     
(59
)
   
77
     
55
     
134
     
363
     
133
         
496
 
  Acquisition of businesses, net of cash acquired
   
382
     
-
     
-
     
(8,672
)
   
(8,290
)
   
37
     
-
         
37
 
  Proceeds from asset dispositions
   
(17
)
   
177
     
632
     
861
     
1,653
     
2,332
     
619
         
2,951
 
  Net sales (purchases) of investments
   
(499
)
   
1,801
     
1,544
     
245
     
3,091
     
(263
)
   
(841
)
       
(1,104
)
  Collection of advances/loans—related parties
   
52
     
-
     
53
     
-
     
105
     
55
     
-
         
55
 
  Other
   
6
     
80
     
(472
)
   
473
     
87
     
26
     
(34
)
       
(8
)
Net Cash Provided by (Used in) Investing Activities
   
(1,215
)
   
734
     
532
     
(8,595
)
   
(8,544
)
   
(611
)
   
(2,091
)
       
(2,702
)
                                                                     
Cash Flows from Financing Activities
                                                                   
  Net issuance (repayment) of debt
   
(26
)
   
(18
)
   
(319
)
   
(142
)
   
(505
)
   
(1,067
)
   
(1,865
)
       
(2,932
)
  Issuance of company common stock
   
(28
)
   
3
     
52
     
118
     
145
     
271
     
79
         
350
 
  Repurchase of company common stock
   
(375
)
   
(606
)
   
(1,243
)
   
(1,399
)
   
(3,623
)
   
(1,425
)
   
(2,300
)
       
(3,725
)
  Dividends paid
   
(588
)
   
(583
)
   
(579
)
   
(609
)
   
(2,359
)
   
(864
)
   
(988
)
       
(1,852
)
  Other
   
2
     
1
     
3
     
1
     
7
     
(52
)
   
(4
)
       
(56
)
Net Cash Used in Financing Activities
   
(1,015
)
   
(1,203
)
   
(2,086
)
   
(2,031
)
   
(6,335
)
   
(3,137
)
   
(5,078
)
       
(8,215
)
                                                                     
Effect of Exchange Rate Changes
   
(2
)
   
11
     
(12
)
   
(31
)
   
(34
)
   
21
     
(258
)
       
(237
)
                                                                     
Net Change in Cash, Cash Equivalents and Restricted Cash
   
(152
)
   
3,793
     
3,231
     
(4,789
)
   
2,083
     
1,341
     
487
         
1,828
 
Cash, cash equivalents and restricted cash at beginning of period
   
3,315
     
3,163
     
6,956
     
10,187
     
3,315
     
5,398
     
6,739
         
5,398
 
Cash, Cash Equivalents and Restricted Cash at End of Period
   
3,163
     
6,956
     
10,187
     
5,398
     
5,398
     
6,739
     
7,226
         
7,226
 
                                                                     
                                                                     
                                                                     
CAPITAL EXPENDITURES AND INVESTMENTS
                                                                   
                                                                     
 Alaska
   
235
     
228
     
235
     
284
     
982
     
253
     
218
         
471
 
                                                                     
 Lower 48
   
718
     
762
     
770
     
879
     
3,129
     
1,062
     
1,285
         
2,347
 
                                                                     
 Canada
   
33
     
35
     
61
     
74
     
203
     
122
     
125
         
247
 
                                                                     
 Europe, Middle East and North Africa
   
121
     
136
     
128
     
149
     
534
     
172
     
192
         
364
 
                                                                     
 Asia Pacific
   
76
     
72
     
87
     
155
     
390
     
1,538
     
126
         
1,664
 
                                                                     
 Other International
   
6
     
12
     
15
     
-
     
33
     
-
     
-
         
-
 
                                                                     
 Corporate and Other
   
11
     
20
     
6
     
16
     
53
     
14
     
22
         
36
 
Total Capital Expenditures and Investments
   
1,200
     
1,265
     
1,302
     
1,557
     
5,324
     
3,161
     
1,968
         
5,129
 


 
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
TOTAL SEGMENTS
                                                   
                                                     
                                                     
Production
                                                   
Total (MBOED)
   
1,527
     
1,588
     
1,544
     
1,608
     
1,567
     
1,747
     
1,692
         
1,720
 
                                                                     
Crude Oil (MBD)
                                                                   
  Consolidated operations
   
804
     
836
     
802
     
824
     
816
     
903
     
857
         
880
 
  Equity affiliates
   
14
     
13
     
13
     
12
     
13
     
12
     
14
         
13
 
  Total
   
818
     
849
     
815
     
836
     
829
     
915
     
871
         
893
 
Over (under) lifting of crude oil (MBD)
   
(28
)
   
27
     
42
     
(13
)
   
7
     
28
     
27
         
27
 
                                                                     
NGL (MBD)
                                                                   
  Consolidated operations
   
105
     
120
     
123
     
186
     
134
     
216
     
236
         
227
 
  Equity affiliates
   
8
     
8
     
7
     
8
     
8
     
7
     
8
         
7
 
  Total
   
113
     
128
     
130
     
194
     
142
     
223
     
244
         
234
 
                                                                     
Bitumen (MBD)
                                                                   
  Consolidated operations
   
70
     
68
     
69
     
68
     
69
     
67
     
59
         
63
 
  Equity affiliates
   
-
     
-
     
-
     
-
     
-
     
-
     
-
         
-
 
  Total
   
70
     
68
     
69
     
68
     
69
     
67
     
59
         
63
 
                                                                     
Natural Gas (MMCFD)
                                                                   
  Consolidated operations
   
2,074
     
2,209
     
2,144
     
2,009
     
2,109
     
2,126
     
1,872
         
1,999
 
  Equity affiliates
   
1,081
     
1,051
     
1,033
     
1,049
     
1,053
     
1,127
     
1,235
         
1,181
 
  Total
   
3,155
     
3,260
     
3,177
     
3,058
     
3,162
     
3,253
     
3,107
         
3,180
 
                                                                     
Industry Prices
                                                                   
Crude Oil ($/BBL)
                                                                   
  WTI
   
57.84
     
66.07
     
70.56
     
77.19
     
67.92
     
94.29
     
108.41
         
101.35
 
  WCS
   
45.32
     
54.60
     
56.99
     
62.58
     
54.87
     
79.76
     
95.71
         
87.73
 
  Brent dated
   
60.90
     
68.83
     
73.47
     
79.73
     
70.73
     
101.40
     
113.78
         
107.59
 
  JCC ($/BBL)
   
43.77
     
55.88
     
67.00
     
73.13
     
59.94
     
80.43
     
86.09
         
83.26
 
Natural Gas ($/MMBTU)
                                                                   
  Henry Hub first of month
   
2.71
     
2.83
     
4.02
     
5.84
     
3.85
     
4.96
     
7.17
         
6.06
 
                                                                     
                                                                     
Average Realized Prices
                                                                   
Total ($/BBL)
   
45.36
     
50.03
     
56.92
     
65.56
     
54.63
     
76.99
     
88.57
         
82.70
 
                                                                     
Crude Oil ($/BBL)
                                                                   
  Consolidated operations
   
57.18
     
65.54
     
70.39
     
76.69
     
67.61
     
94.79
     
111.49
         
102.97
 
  Equity affiliates
   
59.73
     
64.10
     
73.44
     
81.53
     
69.45
     
97.20
     
111.97
         
105.20
 
  Total
   
57.22
     
65.51
     
70.43
     
76.76
     
67.64
     
94.82
     
111.50
         
103.00
 
                                                                     
NGL ($/BBL)
                                                                   
  Consolidated operations
   
24.36
     
25.62
     
33.28
     
36.41
     
31.04
     
40.95
     
42.20
         
41.61
 
  Equity affiliates
   
48.89
     
44.12
     
56.70
     
67.77
     
54.16
     
67.04
     
72.44
         
69.99
 
  Total
   
26.44
     
26.87
     
34.79
     
37.72
     
32.45
     
41.80
     
43.26
         
42.57
 
                                                                     
Bitumen ($/BBL)
                                                                   
  Consolidated operations
   
30.78
     
37.60
     
41.19
     
40.74
     
37.52
     
65.86
     
75.42
         
70.25
 
  Equity affiliates
   
-
     
-
     
-
     
-
     
-
     
-
     
-
         
-
 
  Total
   
30.78
     
37.60
     
41.19
     
40.74
     
37.52
     
65.86
     
75.42
         
70.25
 
                                                                     
Natural Gas ($/MCF)
                                                                   
  Consolidated operations
   
4.89
     
4.25
     
5.93
     
9.13
     
6.00
     
8.81
     
10.19
         
9.46
 
  Equity affiliates
   
3.54
     
3.97
     
5.95
     
7.80
     
5.31
     
8.86
     
10.08
         
9.51
 
  Total
   
4.42
     
4.16
     
5.94
     
8.66
     
5.77
     
8.83
     
10.15
         
9.48
 
                                                                     
                                                                     
Exploration Expenses ($ Millions)
                                                                   
Dry holes
   
6
     
-
     
-
     
28
     
34
     
1
     
87
         
88
 
Leasehold impairment
   
-
     
1
     
-
     
9
     
10
     
6
     
10
         
16
 
Total noncash expenses
   
6
     
1
     
-
     
37
     
44
     
7
     
97
         
104
 
Other (G&A, G&G and lease rentals)
   
78
     
56
     
65
     
101
     
300
     
62
     
46
         
108
 
Total exploration expenses
   
84
     
57
     
65
     
138
     
344
     
69
     
143
         
212
 
                                                                     
U.S. exploration expenses
   
50
     
35
     
32
     
99
     
216
     
54
     
40
         
94
 
International exploration expenses
   
34
     
22
     
33
     
39
     
128
     
15
     
103
         
118
 
                                                                     
                                                                     
DD&A ($ Millions)
                                                                   
 Alaska
   
317
     
262
     
201
     
217
     
997
     
226
     
234
         
460
 
 Lower 48
   
1,000
     
1,017
     
988
     
1,070
     
4,075
     
1,168
     
1,192
         
2,360
 
 Canada
   
126
     
93
     
85
     
82
     
386
     
102
     
98
         
200
 
 Europe, Middle East and North Africa
   
219
     
234
     
217
     
216
     
886
     
192
     
157
         
349
 
 Asia Pacific
   
211
     
240
     
167
     
170
     
788
     
124
     
118
         
242
 
 Other International
   
-
     
-
     
-
     
-
     
-
     
-
     
-
         
-
 
 Corporate and Other
   
13
     
21
     
14
     
28
     
76
     
11
     
11
         
22
 
Total DD&A
   
1,886
     
1,867
     
1,672
     
1,783
     
7,208
     
1,823
     
1,810
         
3,633
 


 
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
PRODUCTION
                                                   
                                                     
                                                     
Crude Oil (MBD)
                                                   
  Consolidated operations
                                                   
   Alaska
   
190
     
184
     
163
     
180
     
178
     
182
     
177
         
180
 
   Lower 48
   
416
     
454
     
457
     
457
     
447
     
538
     
528
         
533
 
   Canada
   
11
     
9
     
8
     
7
     
8
     
6
     
5
         
6
 
     Norway
   
80
     
81
     
82
     
80
     
81
     
76
     
56
         
66
 
     Libya
   
36
     
39
     
35
     
38
     
37
     
37
     
34
         
35
 
   Europe, Middle East and North Africa
   
116
     
120
     
117
     
118
     
118
     
113
     
90
         
101
 
     China
   
31
     
27
     
27
     
28
     
28
     
30
     
29
         
29
 
     Indonesia
   
2
     
2
     
2
     
2
     
2
     
1
     
-
         
1
 
     Malaysia
   
38
     
40
     
28
     
32
     
35
     
33
     
28
         
30
 
   Asia Pacific
   
71
     
69
     
57
     
62
     
65
     
64
     
57
         
60
 
  Total consolidated operations
   
804
     
836
     
802
     
824
     
816
     
903
     
857
         
880
 
  Equity affiliates
   
14
     
13
     
13
     
12
     
13
     
12
     
14
         
13
 
  Total
   
818
     
849
     
815
     
836
     
829
     
915
     
871
         
893
 
                                                                     
NGL (MBD)
                                                                   
  Consolidated operations
                                                                   
   Alaska
   
17
     
15
     
13
     
17
     
16
     
18
     
16
         
17
 
   Lower 48
   
79
     
97
     
101
     
162
     
110
     
191
     
214
         
203
 
   Canada
   
4
     
4
     
4
     
3
     
4
     
3
     
3
         
3
 
     Norway
   
5
     
4
     
5
     
4
     
4
     
4
     
3
         
4
 
   Europe, Middle East and North Africa
   
5
     
4
     
5
     
4
     
4
     
4
     
3
         
4
 
  Total consolidated operations
   
105
     
120
     
123
     
186
     
134
     
216
     
236
         
227
 
  Equity affiliates
   
8
     
8
     
7
     
8
     
8
     
7
     
8
         
7
 
  Total
   
113
     
128
     
130
     
194
     
142
     
223
     
244
         
234
 
                                                                     
Bitumen (MBD)
                                                                   
  Canada
   
70
     
68
     
69
     
68
     
69
     
67
     
59
         
63
 
  Total
   
70
     
68
     
69
     
68
     
69
     
67
     
59
         
63
 
                                                                     
Natural Gas (MMCFD)
                                                                   
  Consolidated operations
                                                                   
   Alaska
   
8
     
11
     
11
     
33
     
16
     
35
     
34
         
34
 
   Lower 48
   
1,319
     
1,459
     
1,389
     
1,195
     
1,340
     
1,426
     
1,411
         
1,419
 
   Canada
   
91
     
84
     
73
     
70
     
80
     
63
     
66
         
65
 
     Norway
   
295
     
284
     
291
     
323
     
298
     
308
     
284
         
296
 
     Libya
   
14
     
13
     
12
     
21
     
15
     
23
     
22
         
22
 
   Europe, Middle East and North Africa
   
309
     
297
     
303
     
344
     
313
     
331
     
306
         
318
 
     Indonesia
   
290
     
290
     
299
     
296
     
294
     
194
     
-
         
97
 
     Malaysia
   
57
     
68
     
69
     
71
     
66
     
77
     
55
         
66
 
   Asia Pacific
   
347
     
358
     
368
     
367
     
360
     
271
     
55
         
163
 
  Total consolidated operations
   
2,074
     
2,209
     
2,144
     
2,009
     
2,109
     
2,126
     
1,872
         
1,999
 
  Equity affiliates
   
1,081
     
1,051
     
1,033
     
1,049
     
1,053
     
1,127
     
1,235
         
1,181
 
  Total
   
3,155
     
3,260
     
3,177
     
3,058
     
3,162
     
3,253
     
3,107
         
3,180
 
                                                                     
Total (MBOED)
                                                                   
  Consolidated operations
                                                                   
   Alaska
   
208
     
201
     
178
     
203
     
197
     
206
     
199
         
203
 
   Lower 48
   
715
     
794
     
790
     
818
     
780
     
967
     
977
         
972
 
   Canada
   
100
     
95
     
93
     
90
     
94
     
86
     
78
         
83
 
     Norway
   
134
     
132
     
135
     
138
     
135
     
131
     
106
         
119
 
     Libya
   
39
     
41
     
37
     
41
     
40
     
41
     
38
         
39
 
   Europe, Middle East and North Africa
   
173
     
173
     
172
     
179
     
175
     
172
     
144
         
158
 
     China
   
31
     
27
     
27
     
28
     
28
     
30
     
29
         
29
 
     Indonesia
   
50
     
50
     
52
     
51
     
51
     
33
     
-
         
17
 
     Malaysia
   
48
     
52
     
40
     
44
     
46
     
46
     
37
         
41
 
   Asia Pacific
   
129
     
129
     
119
     
123
     
125
     
109
     
66
         
87
 
  Total consolidated operations
   
1,325
     
1,392
     
1,352
     
1,413
     
1,371
     
1,540
     
1,464
         
1,503
 
  Equity affiliates
   
202
     
196
     
192
     
195
     
196
     
207
     
228
         
217
 
  Total
   
1,527
     
1,588
     
1,544
     
1,608
     
1,567
     
1,747
     
1,692
         
1,720
 


 
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
AVERAGE REALIZED PRICES
                                                   
                                                     
                                                     
Crude Oil ($/BBL)
                                                   
  Consolidated operations
                                                   
   Alaska
   
59.56
     
67.87
     
72.55
     
79.61
     
69.87
     
95.54
     
114.77
         
105.26
 
   Lower 48**
   
55.68
     
64.13
     
68.59
     
74.82
     
66.12
     
93.55
     
109.14
         
101.34
 
   Canada
   
47.41
     
56.87
     
58.99
     
66.62
     
56.38
     
82.13
     
94.79
         
88.04
 
     Norway
   
56.72
     
66.10
     
72.36
     
78.51
     
68.94
     
92.18
     
116.93
         
102.15
 
     Libya
   
59.78
     
66.88
     
72.57
     
77.64
     
69.06
     
99.92
     
113.03
         
105.39
 
   Europe, Middle East and North Africa
   
57.75
     
66.34
     
72.43
     
78.27
     
68.97
     
94.68
     
115.61
         
103.21
 
     China
   
58.27
     
65.63
     
74.39
     
79.61
     
69.39
     
105.75
     
115.00
         
110.42
 
     Indonesia
   
53.79
     
57.16
     
61.35
     
73.35
     
61.92
     
77.09
     
-
         
77.09
 
     Malaysia
   
62.27
     
69.77
     
75.65
     
80.87
     
71.59
     
104.88
     
119.26
         
111.89
 
   Asia Pacific
   
60.36
     
67.72
     
74.66
     
80.05
     
70.36
     
104.84
     
117.14
         
110.89
 
  Total consolidated operations
   
57.18
     
65.54
     
70.39
     
76.69
     
67.61
     
94.79
     
111.49
         
102.97
 
  Equity affiliates
   
59.73
     
64.10
     
73.44
     
81.53
     
69.45
     
97.20
     
111.97
         
105.20
 
  Total
   
57.22
     
65.51
     
70.43
     
76.76
     
67.64
     
94.82
     
111.50
         
103.00
 
                                                                     
NGL ($/BBL)
                                                                   
  Consolidated operations
                                                                   
   Lower 48
   
23.99
     
24.62
     
32.87
     
35.99
     
30.63
     
40.42
     
42.00
         
41.26
 
   Canada
   
25.32
     
27.14
     
33.47
     
39.68
     
31.18
     
41.83
     
44.93
         
43.44
 
     Norway
   
34.70
     
39.49
     
50.32
     
57.91
     
43.97
     
58.67
     
68.00
         
60.49
 
   Europe, Middle East and North Africa
   
34.70
     
39.49
     
50.32
     
57.91
     
43.97
     
58.67
     
68.00
         
60.49
 
  Total consolidated operations
   
24.36
     
25.62
     
33.28
     
36.41
     
31.04
     
40.95
     
42.20
         
41.61
 
  Equity affiliates
   
48.89
     
44.12
     
56.70
     
67.77
     
54.16
     
67.04
     
72.44
         
69.99
 
  Total
   
26.44
     
26.87
     
34.79
     
37.72
     
32.45
     
41.80
     
43.26
         
42.57
 
                                                                     
Bitumen ($/BBL)
                                                                   
  Canada*
   
30.78
     
37.60
     
41.19
     
40.74
     
37.52
     
65.86
     
75.42
         
70.25
 
  Total
   
30.78
     
37.60
     
41.19
     
40.74
     
37.52
     
65.86
     
75.42
         
70.25
 
                                                                     
Natural Gas ($/MCF)
                                                                   
  Consolidated operations
                                                                   
   Alaska
   
2.23
     
4.53
     
2.63
     
2.22
     
2.81
     
3.92
     
3.34
         
3.66
 
   Lower 48**
   
4.56
     
3.27
     
4.63
     
5.25
     
4.38
     
4.63
     
6.85
         
5.74
 
   Canada
   
2.37
     
2.26
     
2.45
     
3.16
     
2.54
     
3.25
     
4.47
         
3.88
 
     Norway
   
6.15
     
7.36
     
12.28
     
27.06
     
13.75
     
30.93
     
30.06
         
30.52
 
     Libya
   
2.71
     
3.02
     
4.17
     
4.58
     
3.73
     
5.13
     
5.61
         
5.36
 
   Europe, Middle East and North Africa
   
5.99
     
7.17
     
11.96
     
25.71
     
13.27
     
29.18
     
28.32
         
28.77
 
     Indonesia
   
6.57
     
7.19
     
7.49
     
8.23
     
7.38
     
8.26
     
-
         
8.26
 
     Malaysia
   
2.35
     
2.61
     
3.02
     
3.59
     
2.93
     
3.85
     
4.17
         
3.98
 
   Asia Pacific
   
5.88
     
6.32
     
6.66
     
7.33
     
6.56
     
7.01
     
4.17
         
6.53
 
  Total consolidated operations
   
4.89
     
4.25
     
5.93
     
9.13
     
6.00
     
8.81
     
10.19
         
9.46
 
  Equity affiliates
   
3.54
     
3.97
     
5.95
     
7.80
     
5.31
     
8.86
     
10.08
         
9.51
 
  Total
   
4.42
     
4.16
     
5.94
     
8.66
     
5.77
     
8.83
     
10.15
         
9.48
 
*Average realized prices exclude additional value realized from third-party purchases and sales for optimization of our pipeline capacity between Canada and the U.S. Gulf Coast.
 
**Average sales prices, including the impact of hedges settling per initial contract terms in the first quarter of 2021 assumed in our Concho acquisition, were $65.19 per barrel for crude oil and $4.33 per mcf for natural gas for the year ended December 31, 2021. As of March 31, 2021, we had settled all oil and gas hedging positions acquired from Concho.
 


 
2021
   
2022
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
YTD
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
 
YTD
 
CORPORATE AND OTHER
                                                   
                                                     
                                                     
Corporate and Other Earnings (Loss) ($ Millions)
   
(121
)
   
66
     
(213
)
   
58
     
(210
)
   
546
     
(349
)
       
197
 
                                                                     
                                                                     
Detail of Earnings (Loss) ($ Millions)
                                                                   
Net interest expense
   
(270
)
   
(181
)
   
(176
)
   
(174
)
   
(801
)
   
(218
)
   
(164
)
       
(382
)
Corporate G&A expenses
   
(129
)
   
(65
)
   
(57
)
   
(66
)
   
(317
)
   
(79
)
   
(16
)
       
(95
)
Technology*
   
41
     
(4
)
   
(6
)
   
(6
)
   
25
     
58
     
(9
)
       
49
 
Other
   
237
     
316
     
26
     
304
     
883
     
785
     
(160
)
       
625
 
Total
   
(121
)
   
66
     
(213
)
   
58
     
(210
)
   
546
     
(349
)
       
197
 
*Includes investment in new technologies or businesses outside of our normal scope of operations and licensing revenues.
             
                                                                     
                                                                     
Before-Tax Net Interest Expense ($ Millions)
                                                                   
Interest expense
   
(241
)
   
(235
)
   
(236
)
   
(234
)
   
(946
)
   
(227
)
   
(224
)
       
(451
)
Capitalized interest
   
15
     
15
     
17
     
15
     
62
     
10
     
13
         
23
 
Interest revenue
   
6
     
4
     
5
     
7
     
22
     
6
     
29
         
35
 
Total
   
(220
)
   
(216
)
   
(214
)
   
(212
)
   
(862
)
   
(211
)
   
(182
)
       
(393
)
                                                                     
Debt
                                                                   
Total debt ($ Millions)
   
20,027
     
20,010
     
19,668
     
19,934
     
19,934
     
18,746
     
16,971
         
16,971
 
Debt-to-capital ratio (%)
   
32
%
   
31
%
   
31
%
   
31
%
   
31
%
   
28
%
   
25
%
       
25
%
                                                                     
Equity ($ Millions)
   
43,155
     
44,276
     
44,115
     
45,406
     
45,406
     
49,218
     
50,202
         
50,202
 



REFERENCE
   
Commonly Used Abbreviations
Earnings
Net Income (Loss) Attributable to ConocoPhillips
DD&A
Depreciation, Depletion and Amortization
G&G
Geological and Geophysical
G&A
General and Administrative
JCC
Japan Crude Cocktail
LNG
Liquefied Natural Gas
NGL
Natural Gas Liquids
WCS
Western Canada Select
WTI
West Texas Intermediate
   
   
Units of Measure
BBL
Barrels
MMBBL
Millions of Barrels
MBD
Thousands of Barrels per Day
MBOED
Thousands of Barrels of Oil Equivalent per Day
MCF
Thousands of Cubic Feet
MMBTU
Millions of British Thermal Units
MMCFD
Millions of Cubic Feet per Day