UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):   July 30, 2020
ConocoPhillips
(Exact name of registrant as specified in its charter)
Delaware
001-32395
01-0562944
(State or other jurisdiction of
(Commission
(I.R.S. Employer
incorporation)
File Number)
Identification No.)
925 N. Eldridge Parkway
Houston, Texas 77079
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code:  (281) 293-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


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

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

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

Emerging growth company

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



Item 2.02 Results of Operations and Financial Condition.
 
On July 30, 2020 ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2020.  A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.  Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
 
 
Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits
 
          Exhibit No.      Description
 
 
 

104
     Cover Page Interactive Data File (formatted as Inline XBRL and filed herewith).
 


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

 
CONOCOPHILLIPS
   
   
   
  /s/ Catherine A. Brooks
 
Catherine A. Brooks
Vice President and Controller
   
July 30, 2020
 

 
Exhibit 99.1

ConocoPhillips Reports Second-Quarter 2020 Results

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

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

Second-Quarter Highlights and Recent Announcements

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

Second-Quarter Review

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

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


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

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

Six-Month Review

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

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

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

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

Other Items

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

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

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

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


--- # # # ---

About ConocoPhillips

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

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

This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as "anticipate," "estimate," "believe," "budget," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas and the resulting company actions in response to such changes, including changes resulting from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining, or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to liquidate the common stock issued to us by Cenovus Energy Inc. at prices we deem acceptable, or at all; our ability to complete our announced dispositions or acquisitions on the timeline currently anticipated, if at all; the possibility that regulatory approvals for our announced dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of our announced dispositions, acquisitions or our remaining business; business disruptions during or following our announced dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced dispositions in the manner and timeframe we currently anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; the impact of competition and consolidation in the oil and gas industry; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from extraordinary weather events, civil unrest, war, terrorism or a cyber attack; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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


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

The company believes that the non-GAAP measures adjusted earnings (both on an aggregate and a per-share basis) are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

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

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

Other Terms – This news release also contains the terms underlying production. Underlying production excludes Libya and reflects the impact of closed dispositions with an assumed close date of January 1, 2019. The company believes that underlying production is useful to investors to compare production excluding Libya and reflecting the impact of closed and pending dispositions on a consistent go-forward basis across periods and with peer companies.

References in the release to earnings refer to net income/(loss) attributable to ConocoPhillips.



ConocoPhillips





















Table 1: Reconciliation of earnings to adjusted earnings







$ Millions, Except as Indicated
















 




2Q20


2Q19


2020 YTD


2019 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


$

260

 

0.24

 




1,580

 

1.40

 




(1,479

)

(1.37

)




3,413

 

3.00

 



Adjustments:





















Net gain on asset sales

(589

)

(5

)

 

(594

)

(0.56

)


(61

)

(32

)

(93

)

(0.08

)


(551

)

(14

)

(565

)

(0.52

)


(61

)

(32

)

(93

)

(0.08

)



Unrealized (gain) loss on CVE shares

(551

)

-

 

 

(551

)

(0.51

)


(30

)

-

 

(30

)

(0.03

)


1,140

 

-

 

1,140

 

1.05

 


(373

)

-

 

(373

)

(0.33

)



Impairments

(214

)

55

 

 

(159

)

(0.15

)


95

 

(22

)

73

 

0.06

 


556

 

(122

)

434

 

0.40

 


155

 

(35

)

120

 

0.10

 



Alberta tax credit

-

 

(48

)

 

(48

)

(0.04

)


-

 

-

 

-

 

-

 


-

 

(48

)

(48

)

(0.04

)


-

 

-

 

-

 

-

 



Pending claims and settlements

(3

)

-

 

 

(3

)

-

 


(135

)

15

 

(120

)

(0.11

)


(32

)

-

 

(32

)

(0.03

)


(265

)

(53

)

(318

)

(0.28

)



Deferred tax adjustments

-

 

92

 

 

92

 

0.09

 


-

 

(27

)

(27

)

(0.02

)


-

 

92

 

92

 

0.09

 


-

 

(27

)

(27

)

(0.02

)



Unrealized (gain) loss on FX derivative

12

 

(3

)

 

9

 

0.01

 


24

 

(5

)

19

 

0.02

 


(63

)

13

 

(50

)

(0.05

)


30

 

(6

)

24

 

0.02

 



Alberta tax rate change

-

 

-

 

 

-

 

-

 


-

 

(25

)

(25

)

(0.02

)


-

 

-

 

-

 

-

 


-

 

(25

)

(25

)

(0.02

)



Capital loss tax benefit

-

 

-

 

 

-

 

-

 


-

 

(234

)

(234

)

(0.21

)


-

 

-

 

-

 

-

 


-

 

(234

)

(234

)

(0.21

)



Recognition of deferred revenue

-

 

-

 

 

-

 

-

 


-

 

-

 

-

 

-

 


-

 

-

 

-

 

-

 


(248

)

52

 

(196

)

(0.17

)



Adjusted earnings / (loss)


$

(994

)

(0.92

)




1,143

 

1.01

 




(508

)

(0.47

)




2,291

 

2.01

 























 


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


ConocoPhillips









Table 2: Reconciliation of reported production to underlying production





In MBOED, Except as Indicated

















 





2Q20

2Q19


2020 YTD

2019 YTD




Total Reported Production

981

 

1,332

 


1,135

 

1,346

 












 


Adjustments:









Libya

-

 

(42

)


(5

)

(43

)




Total Production excluding Libya

981

 

1,290

 


1,130

 

1,303

 












 


Closed Dispositions1

(24

)

(121

)


(41

)

(135

)




Total Underlying Production

957

 

1,169

 


1,089

 

1,168

 




1Includes production from the completed U.K., various Lower 48 dispositions and Australia-West disposition.



ConocoPhillips





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


$ Millions, Except as Indicated









 



2Q20

2020 YTD




Net Cash Provided by Operating Activities

157

 

2,262

 








 


Adjustments:





Net operating working capital changes

(519

)

(22

)




Cash from operations

676

 

2,284

 









 

 

Contacts

John C. Roper (media)
281-293-1451
john.c.roper@conocophillips.com

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

Exhibit 99.2

 
Second-Quarter 2020 Detailed Supplemental Information
 
                                                   
                                                   
   
2019
   
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
$ Millions, Except as Indicated
                                                 
CONSOLIDATED INCOME STATEMENT
                                                 
                                                   
Revenues and Other Income
                                                 
Sales and other operating revenues
   
9,150
     
7,953
     
7,756
     
7,708
     
32,567
     
6,158
     
2,749
       
8,907
 
Equity in earnings of affiliates
   
188
     
173
     
290
     
128
     
779
     
234
     
77
       
311
 
Gain (loss) on dispositions
   
17
     
82
     
1,785
     
82
     
1,966
     
(42
)
   
596
       
554
 
Other income (loss)
   
702
     
172
     
262
     
222
     
1,358
     
(1,539
)
   
594
       
(945
)
Total Revenues and Other Income
   
10,057
     
8,380
     
10,093
     
8,140
     
36,670
     
4,811
     
4,016
       
8,827
 
                                                                   
Costs and Expenses
                                                                 
Purchased commodities
   
3,675
     
2,674
     
2,710
     
2,783
     
11,842
     
2,661
     
1,130
       
3,791
 
Production and operating expenses
   
1,271
     
1,418
     
1,331
     
1,302
     
5,322
     
1,173
     
1,047
       
2,220
 
Selling, general and administrative expenses
   
153
     
129
     
87
     
187
     
556
     
(3
)
   
156
       
153
 
Exploration expenses
   
110
     
122
     
360
     
151
     
743
     
188
     
97
       
285
 
Depreciation, depletion and amortization
   
1,546
     
1,490
     
1,566
     
1,488
     
6,090
     
1,411
     
1,158
       
2,569
 
Impairments
   
1
     
1
     
24
     
379
     
405
     
521
     
(2
)
     
519
 
Taxes other than income taxes
   
275
     
194
     
237
     
247
     
953
     
250
     
141
       
391
 
Accretion on discounted liabilities
   
86
     
87
     
86
     
67
     
326
     
67
     
66
       
133
 
Interest and debt expense
   
233
     
165
     
184
     
196
     
778
     
202
     
202
       
404
 
Foreign currency transactions (gain) loss
   
12
     
28
     
(21
)
   
47
     
66
     
(90
)
   
7
       
(83
)
Other expenses
   
8
     
14
     
36
     
7
     
65
     
(6
)
   
(7
)
     
(13
)
Total Costs and Expenses
   
7,370
     
6,322
     
6,600
     
6,854
     
27,146
     
6,374
     
3,995
       
10,369
 
Income (loss) before income taxes
   
2,687
     
2,058
     
3,493
     
1,286
     
9,524
     
(1,563
)
   
21
       
(1,542
)
Income tax provision (benefit)
   
841
     
461
     
422
     
543
     
2,267
     
148
     
(257
)
     
(109
)
Net Income (Loss)
   
1,846
     
1,597
     
3,071
     
743
     
7,257
     
(1,711
)
   
278
       
(1,433
)
Less: net income attributable to noncontrolling interests
   
(13
)
   
(17
)
   
(15
)
   
(23
)
   
(68
)
   
(28
)
   
(18
)
     
(46
)
Net Income (Loss) Attributable to ConocoPhillips
   
1,833
     
1,580
     
3,056
     
720
     
7,189
     
(1,739
)
   
260
       
(1,479
)
                                                                   
Net Income (Loss) Attributable to ConocoPhillips
                                                                 
Per Share of Common Stock (dollars)
                                                                 
Basic
   
1.61
     
1.40
     
2.76
     
0.66
     
6.43
     
(1.60
)
   
0.24
       
(1.37
)
Diluted
   
1.60
     
1.40
     
2.74
     
0.65
     
6.40
     
(1.60
)
   
0.24
       
(1.37
)
                                                                   
Average Common Shares Outstanding
(in thousands)*
                                                                 
Basic
   
1,139,463
     
1,125,995
     
1,108,555
     
1,095,606
     
1,117,260
     
1,084,561
     
1,076,659
       
1,080,610
 
Diluted
   
1,146,515
     
1,131,242
     
1,113,250
     
1,099,786
     
1,123,536
     
1,084,561
     
1,077,606
       
1,080,610
 
*Ending Common Shares Outstanding is 1,072,566 as of Jun. 30, 2020, compared with 1,072,425 as of Mar. 31, 2020.
                   
                                                                   
                                                                   
INCOME (LOSS) BEFORE INCOME TAXES
                                                                 
                                                                   
Alaska
   
505
     
580
     
417
     
491
     
1,993
     
107
     
(195
)
     
(88
)
                                                                   
Lower 48
   
261
     
269
     
35
     
9
     
574
     
(562
)
   
(471
)
     
(1,033
)
                                                                   
Canada
   
73
     
100
     
69
     
(6
)
   
236
     
(150
)
   
(177
)
     
(327
)
                                                                   
Europe and North Africa
   
709
     
602
     
2,345
     
502
     
4,158
     
187
     
(72
)
     
115
 
                                                                   
Asia Pacific and Middle East
   
730
     
642
     
606
     
509
     
2,487
     
569
     
714
       
1,283
 
                                                                   
Other International
   
130
     
87
     
75
     
(21
)
   
271
     
27
     
(5
)
     
22
 
                                                                   
Corporate and Other
   
279
     
(222
)
   
(54
)
   
(198
)
   
(195
)
   
(1,741
)
   
227
       
(1,514
)
                                                                   
Consolidated
   
2,687
     
2,058
     
3,493
     
1,286
     
9,524
     
(1,563
)
   
21
       
(1,542
)
                                                                   
                                                                   
                                                                   
                                                                   
EFFECTIVE INCOME TAX RATES
                                                                 
                                                                   
Alaska*
   
23.9
%
   
20.5
%
   
26.6
%
   
24.7
%
   
23.7
%
   
24.3
%
   
27.6
%
     
31.6
%
                                                                   
Lower 48
   
26.2
%
   
23.1
%
   
27.7
%
   
-32.5
%
   
24.0
%
   
22.3
%
   
22.5
%
     
22.4
%
                                                                   
Canada
   
-66.4
%
   
-1.0
%
   
26.1
%
   
196.6
%
   
-18.3
%
   
26.8
%
   
51.8
%
     
40.4
%
                                                                   
Europe and North Africa
   
70.8
%
   
32.4
%
   
14.6
%
   
78.4
%
   
34.5
%
   
59.8
%
   
115.1
%
     
25.0
%
                                                                   
Asia Pacific and Middle East
   
26.2
%
   
17.1
%
   
-3.8
%
   
41.8
%
   
19.7
%
   
25.2
%
   
4.8
%
     
13.9
%
                                                                   
Other International
   
-1.3
%
   
6.6
%
   
4.4
%
   
-0.8
%
   
2.8
%
   
-2.0
%
   
-2.6
%
     
-1.8
%
                                                                   
Corporate and Other
   
3.0
%
   
13.3
%
   
74.3
%
   
86.6
%
   
119.4
%
   
-1.9
%
   
18.7
%
     
-5.0
%
                                                                   
Consolidated
   
31.3
%
   
22.4
%
   
12.1
%
   
42.2
%
   
23.8
%
   
-9.5
%
   
-1330.4
%
     
7.1
%
*Alaska including taxes other than income taxes.
   
38.1
%
   
25.8
%
   
40.6
%
   
38.2
%
   
35.4
%
   
61.2
%
   
-18.9
%
     
166.5
%


 
2019
 
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
$ Millions
                                                 
EARNINGS BY SEGMENT
                                                 
                                                   
Alaska
   
384
     
462
     
306
     
368
     
1,520
     
81
     
(141
)
     
(60
)
                                                                   
Lower 48
   
193
     
206
     
26
     
11
     
436
     
(437
)
   
(365
)
     
(802
)
                                                                   
Canada
   
122
     
100
     
51
     
6
     
279
     
(109
)
   
(86
)
     
(195
)
                                                                   
Europe and North Africa
   
207
     
407
     
2,001
     
109
     
2,724
     
75
     
11
       
86
 
                                                                   
Asia Pacific and Middle East
   
525
     
517
     
613
     
274
     
1,929
     
398
     
662
       
1,060
 
                                                                   
Other International
   
131
     
81
     
73
     
(22
)
   
263
     
28
     
(6
)
     
22
 
                                                                   
Corporate and Other
   
271
     
(193
)
   
(14
)
   
(26
)
   
38
     
(1,775
)
   
185
       
(1,590
)
                                                                   
Consolidated
   
1,833
     
1,580
     
3,056
     
720
     
7,189
     
(1,739
)
   
260
       
(1,479
)
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
SPECIAL ITEMS
                                                                 
                                                                   
Alaska
   
-
     
81
     
(6
)
   
4
     
79
     
(120
)
   
81
       
(39
)
                                                                   
Lower 48
   
(47
)
   
(125
)
   
(110
)
   
(230
)
   
(512
)
   
(467
)
   
40
       
(427
)
                                                                   
Canada
   
68
     
66
     
-
     
-
     
134
     
(29
)
   
77
       
48
 
                                                                   
Europe and North Africa
   
-
     
234
     
1,845
     
(7
)
   
2,072
     
(2
)
   
2
       
-
 
                                                                   
Asia Pacific and Middle East
   
-
     
52
     
164
     
(151
)
   
65
     
(4
)
   
601
       
597
 
                                                                   
Other International
   
147
     
84
     
86
     
-
     
317
     
29
     
-
       
29
 
                                                                   
Corporate and Other
   
517
     
45
     
163
     
273
     
998
     
(1,632
)
   
453
       
(1,179
)
                                                                   
Consolidated
   
685
     
437
     
2,142
     
(111
)
   
3,153
     
(2,225
)
   
1,254
       
(971
)
Detailed reconciliation of these items is provided on page 3.
                                                           
                                                                   
                                                                   
                                                                   
                                                                   
ADJUSTED EARNINGS
                                                                 
                                                                   
Alaska
   
384
     
381
     
312
     
364
     
1,441
     
201
     
(222
)
     
(21
)
                                                                   
Lower 48
   
240
     
331
     
136
     
241
     
948
     
30
     
(405
)
     
(375
)
                                                                   
Canada
   
54
     
34
     
51
     
6
     
145
     
(80
)
   
(163
)
     
(243
)
                                                                   
Europe and North Africa
   
207
     
173
     
156
     
116
     
652
     
77
     
9
       
86
 
                                                                   
Asia Pacific and Middle East
   
525
     
465
     
449
     
425
     
1,864
     
402
     
61
       
463
 
                                                                   
Other International
   
(16
)
   
(3
)
   
(13
)
   
(22
)
   
(54
)
   
(1
)
   
(6
)
     
(7
)
                                                                   
Corporate and Other
   
(246
)
   
(238
)
   
(177
)
   
(299
)
   
(960
)
   
(143
)
   
(268
)
     
(411
)
                                                                   
Consolidated
   
1,148
     
1,143
     
914
     
831
     
4,036
     
486
     
(994
)
     
(508
)
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
ADJUSTED EFFECTIVE INCOME TAX RATES
                                                                 
                                                                   
Alaska
   
23.9
%
   
25.6
%
   
25.2
%
   
25.4
%
   
25.0
%
   
23.0
%
   
26.6
%
     
48.4
%
                                                                   
Lower 48
   
25.3
%
   
23.0
%
   
23.1
%
   
20.5
%
   
23.0
%
   
18.0
%
   
22.5
%
     
22.8
%
                                                                   
Canada
   
26.7
%
   
20.8
%
   
26.1
%
   
196.6
%
   
19.5
%
   
27.2
%
   
25.0
%
     
25.7
%
                                                                   
Europe and North Africa
   
70.8
%
   
71.3
%
   
73.4
%
   
77.7
%
   
73.0
%
   
61.0
%
   
110.7
%
     
25.0
%
                                                                   
Asia Pacific and Middle East
   
26.2
%
   
24.6
%
   
23.3
%
   
28.9
%
   
25.8
%
   
25.1
%
   
35.6
%
     
27.0
%
                                                                   
Other International
   
9.6
%
   
-32.9
%
   
-2.7
%
   
-0.8
%
   
0.7
%
   
28.6
%
   
-2.6
%
     
5.3
%
                                                                   
Corporate and Other
   
14.8
%
   
12.7
%
   
23.3
%
   
4.8
%
   
13.2
%
   
-13.9
%
   
15.0
%
     
6.9
%
                                                                   
Consolidated
   
42.9
%
   
40.5
%
   
42.5
%
   
46.6
%
   
43.0
%
   
38.2
%
   
26.3
%
     
6.1
%


 
2019
   
2020
 
$ Millions
 
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
DETAILED SPECIAL ITEMS
                                                 
                                                   
Alaska
                                                 
Impairments
   
-
     
-
     
-
     
-
     
-
     
(154
)
   
109
       
(45
)
Pending claims and settlements
   
-
     
69
     
-
     
-
     
69
     
-
     
-
       
-
 
Subtotal before income taxes
   
-
     
69
     
-
     
-
     
69
     
(154
)
   
109
       
(45
)
Income tax provision (benefit)1
   
-
     
(12
)
   
6
     
(4
)
   
(10
)
   
(34
)
   
28
       
(6
)
Total
   
-
     
81
     
(6
)
   
4
     
79
     
(120
)
   
81
       
(39
)
                                                                   
Lower 48
                                                                 
Impairments
   
(60
)
   
(95
)
   
(141
)
   
(386
)
   
(682
)
   
(561
)
   
50
       
(511
)
Gain (loss) on asset sales
   
-
     
-
     
-
     
82
     
82
     
(38
)
   
2
       
(36
)
Pending claims and settlements
   
-
     
(67
)
   
-
     
9
     
(58
)
   
-
     
-
       
-
 
Subtotal before income taxes
   
(60
)
   
(162
)
   
(141
)
   
(295
)
   
(658
)
   
(599
)
   
52
       
(547
)
Income tax provision (benefit)
   
(13
)
   
(37
)
   
(31
)
   
(65
)
   
(146
)
   
(132
)
   
12
       
(120
)
Total
   
(47
)
   
(125
)
   
(110
)
   
(230
)
   
(512
)
   
(467
)
   
40
       
(427
)
                                                                   
Canada
                                                                 
Impairments
   
-
     
-
     
-
     
-
     
-
     
(39
)
   
39
       
-
 
Gain (loss) on asset sales
   
-
     
56
     
-
     
-
     
56
     
-
     
-
       
-
 
Subtotal before income taxes
   
-
     
56
     
-
     
-
     
56
     
(39
)
   
39
       
-
 
Income tax provision (benefit)2
   
(68
)
   
(10
)
   
-
     
-
     
(78
)
   
(10
)
   
(38
)
     
(48
)
Total
   
68
     
66
     
-
     
-
     
134
     
(29
)
   
77
       
48
 
                                                                   
Europe and North Africa
                                                                 
Impairments
   
-
     
-
     
-
     
-
     
-
     
(11
)
   
11
       
-
 
Gain (loss) on asset sales
   
-
     
-
     
1,752
     
(15
)
   
1,737
     
-
     
-
       
-
 
Subtotal before income taxes
   
-
     
-
     
1,752
     
(15
)
   
1,737
     
(11
)
   
11
       
-
 
Income tax provision (benefit)3
   
-
     
(234
)
   
(93
)
   
(8
)
   
(335
)
   
(9
)
   
9
       
-
 
Total
   
-
     
234
     
1,845
     
(7
)
   
2,072
     
(2
)
   
2
       
-
 
                                                                   
Asia Pacific and Middle East
                                                                 
Gain (loss) on asset sales
   
-
     
5
     
-
     
-
     
5
     
-
     
587
       
587
 
Impairments
   
-
     
-
     
-
     
-
     
-
     
(5
)
   
5
       
-
 
Qatar deferred tax adjustment
   
-
     
-
     
-
     
(118
)
   
(118
)
   
-
     
-
       
-
 
Pending claims and settlements
   
-
     
-
     
-
     
(2
)
   
(2
)
   
-
     
-
       
-
 
Subtotal before income taxes
   
-
     
5
     
-
     
(120
)
   
(115
)
   
(5
)
   
592
       
587
 
Income tax provision (benefit)4
   
-
     
(47
)
   
(164
)
   
31
     
(180
)
   
(1
)
   
(9
)
     
(10
)
Total
   
-
     
52
     
164
     
(151
)
   
65
     
(4
)
   
601
       
597
 
                                                                   
Other International
                                                                 
Pending claims and settlements
   
147
     
89
     
89
     
-
     
325
     
29
     
-
       
29
 
Subtotal before income taxes
   
147
     
89
     
89
     
-
     
325
     
29
     
-
       
29
 
Income tax provision (benefit)
   
-
     
5
     
3
     
-
     
8
     
-
     
-
       
-
 
Total
   
147
     
84
     
86
     
-
     
317
     
29
     
-
       
29
 
                                                                   
Corporate and Other
                                                                 
Pension settlement expense
   
-
     
-
     
(37
)
   
(8
)
   
(45
)
   
-
     
-
       
-
 
Pending claims and settlements
   
(17
)
   
44
     
34
     
(17
)
   
44
     
-
     
3
       
3
 
Unrealized gain (loss) on CVE common shares
   
343
     
30
     
116
     
160
     
649
     
(1,691
)
   
551
       
(1,140
)
Unrealized gain (loss) on CAD FX derivative
   
(6
)
   
(24
)
   
15
     
(18
)
   
(33
)
   
75
     
(12
)
     
63
 
Recognition of deferred revenue
   
248
     
-
     
49
     
-
     
297
     
-
     
-
       
-
 
Subtotal before income taxes
   
568
     
50
     
177
     
117
     
912
     
(1,616
)
   
542
       
(1,074
)
Income tax provision (benefit)5
   
51
     
5
     
14
     
(156
)
   
(86
)
   
16
     
89
       
105
 
Total
   
517
     
45
     
163
     
273
     
998
     
(1,632
)
   
453
       
(1,179
)
                                                                   
Total Company
   
685
     
437
     
2,142
     
(111
)
   
3,153
     
(2,225
)
   
1,254
       
(971
)
1Includes deferred tax adjustment in 2Q 2019 and 2Q 2020 in Alaska.
                                                   
2Includes deferred tax adjustment in 1Q 2019, tax rate change in 2Q 2019, and recognition of a tax refund in 2Q 2020 in Canada.
           
3Includes tax adjustment in 2Q 2019 and 3Q 2019 related to the U.K. disposition.
                                           
4Includes tax adjustment in 2Q 2019 related to the Greater Sunrise Fields disposition, 3Q 2019 for Malaysia Deepwater tax incentives, and 2Q 2020 for the Australia-West disposition.
 
5Includes deferred tax adjustment related to foreign tax credits in 4Q 2019 and 2Q 2020.
                                   


 
2019
   
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
$ Millions
                                                 
CONSOLIDATED BALANCE SHEET
                                                 
                                                   
Assets
                                                 
Cash and cash equivalents
   
6,218
     
5,941
     
7,193
     
5,088
     
5,088
     
3,908
     
2,907
       
2,907
 
Short-term investments
   
249
     
732
     
908
     
3,028
     
3,028
     
3,866
     
3,985
       
3,985
 
Accounts and notes receivable
   
3,701
     
3,490
     
3,478
     
3,267
     
3,267
     
2,116
     
1,399
       
1,399
 
Accounts and notes receivable—related parties
   
168
     
161
     
138
     
134
     
134
     
148
     
133
       
133
 
Investment in Cenovus Energy
   
1,805
     
1,835
     
1,951
     
2,111
     
2,111
     
420
     
971
       
971
 
Inventories
   
1,014
     
1,089
     
955
     
1,026
     
1,026
     
726
     
982
       
982
 
Prepaid expenses and other current assets
   
528
     
2,552
     
594
     
2,259
     
2,259
     
1,960
     
676
       
676
 
Total Current Assets
   
13,683
     
15,800
     
15,217
     
16,913
     
16,913
     
13,144
     
11,053
       
11,053
 
Investments and long-term receivables
   
9,302
     
8,748
     
8,916
     
8,687
     
8,687
     
8,707
     
8,334
       
8,334
 
Loans and advances—related parties
   
268
     
268
     
219
     
219
     
219
     
167
     
167
       
167
 
Net properties, plants and equipment
   
45,942
     
44,334
     
43,814
     
42,269
     
42,269
     
40,645
     
41,120
       
41,120
 
Other assets
   
2,303
     
2,111
     
2,174
     
2,426
     
2,426
     
2,370
     
2,372
       
2,372
 
Total Assets
   
71,498
     
71,261
     
70,340
     
70,514
     
70,514
     
65,033
     
63,046
       
63,046
 
                                                                   
Liabilities
                                                                 
Accounts payable
   
3,815
     
3,618
     
3,148
     
3,176
     
3,176
     
2,900
     
2,060
       
2,060
 
Accounts payable—related parties
   
31
     
17
     
23
     
24
     
24
     
21
     
20
       
20
 
Short-term debt
   
113
     
114
     
121
     
105
     
105
     
126
     
146
       
146
 
Accrued income and other taxes
   
1,539
     
1,213
     
1,077
     
1,030
     
1,030
     
853
     
312
       
312
 
Employee benefit obligations
   
470
     
529
     
543
     
663
     
663
     
323
     
422
       
422
 
Other accruals
   
1,402
     
3,505
     
1,030
     
2,045
     
2,045
     
1,852
     
1,145
       
1,145
 
Total Current Liabilities
   
7,370
     
8,996
     
5,942
     
7,043
     
7,043
     
6,075
     
4,105
       
4,105
 
Long-term debt
   
14,832
     
14,809
     
14,799
     
14,790
     
14,790
     
14,847
     
14,852
       
14,852
 
Asset retirement obligations and accrued environmental costs
   
7,730
     
5,996
     
6,087
     
5,352
     
5,352
     
5,316
     
5,465
       
5,465
 
Deferred income taxes
   
5,043
     
4,825
     
4,693
     
4,634
     
4,634
     
4,141
     
3,901
       
3,901
 
Employee benefit obligations
   
1,704
     
1,689
     
1,786
     
1,781
     
1,781
     
1,563
     
1,586
       
1,586
 
Other liabilities and deferred credits
   
1,838
     
1,872
     
1,794
     
1,864
     
1,864
     
1,704
     
1,644
       
1,644
 
Total Liabilities
   
38,517
     
38,187
     
35,101
     
35,464
     
35,464
     
33,646
     
31,553
       
31,553
 
                                                                   
Equity
                                                                 
Common stock issued
                                                                 
Par value
   
18
     
18
     
18
     
18
     
18
     
18
     
18
       
18
 
Capital in excess of par
   
46,877
     
46,922
     
46,954
     
46,983
     
46,983
     
47,027
     
47,079
       
47,079
 
Treasury stock
   
(43,656
)
   
(44,906
)
   
(45,656
)
   
(46,405
)
   
(46,405
)
   
(47,130
)
   
(47,130
)
     
(47,130
)
Accumulated other comprehensive income (loss)
   
(5,914
)
   
(5,827
)
   
(5,654
)
   
(5,357
)
   
(5,357
)
   
(6,145
)
   
(5,825
)
     
(5,825
)
Retained earnings
   
35,534
     
36,769
     
39,484
     
39,742
     
39,742
     
37,545
     
37,351
       
37,351
 
Total Common Stockholders' Equity
   
32,859
     
32,976
     
35,146
     
34,981
     
34,981
     
31,315
     
31,493
       
31,493
 
Noncontrolling Interests
   
122
     
98
     
93
     
69
     
69
     
72
     
-
       
-
 
Total Equity
   
32,981
     
33,074
     
35,239
     
35,050
     
35,050
     
31,387
     
31,493
       
31,493
 
Total Liabilities and Equity
   
71,498
     
71,261
     
70,340
     
70,514
     
70,514
     
65,033
     
63,046
       
63,046
 


 
2019
   
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
$ Millions
                                                 
CASH FLOW INFORMATION
                                                 
                                                   
Cash Flows from Operating Activities
                                                 
Net income (loss)
   
1,846
     
1,597
     
3,071
     
743
     
7,257
     
(1,711
)
   
278
       
(1,433
)
Depreciation, depletion and amortization
   
1,546
     
1,490
     
1,566
     
1,488
     
6,090
     
1,411
     
1,158
       
2,569
 
Impairments
   
1
     
1
     
24
     
379
     
405
     
521
     
(2
)
     
519
 
Dry hole costs and leasehold impairments
   
27
     
41
     
293
     
60
     
421
     
67
     
3
       
70
 
Accretion on discounted liabilities
   
86
     
87
     
86
     
67
     
326
     
67
     
66
       
133
 
Deferred taxes
   
(1
)
   
(220
)
   
(83
)
   
(140
)
   
(444
)
   
(227
)
   
(93
)
     
(320
)
Undistributed equity earnings
   
24
     
338
     
(102
)
   
334
     
594
     
31
     
373
       
404
 
Gain on dispositions
   
(17
)
   
(82
)
   
(1,785
)
   
(82
)
   
(1,966
)
   
42
     
(596
)
     
(554
)
Unrealized (gain) loss on investment in Cenovus Energy
   
(343
)
   
(30
)
   
(116
)
   
(160
)
   
(649
)
   
1,691
     
(551
)
     
1,140
 
Other
   
(221
)
   
200
     
(310
)
   
(20
)
   
(351
)
   
(284
)
   
40
       
(244
)
Net working capital changes
   
(54
)
   
(531
)
   
(307
)
   
313
     
(579
)
   
497
     
(519
)
     
(22
)
Net Cash Provided by Operating Activities
   
2,894
     
2,891
     
2,337
     
2,982
     
11,104
     
2,105
     
157
       
2,262
 
                                                                   
Cash Flows from Investing Activities
                                                                 
Capital expenditures and investments
   
(1,637
)
   
(1,729
)
   
(1,675
)
   
(1,595
)
   
(6,636
)
   
(1,649
)
   
(876
)
     
(2,525
)
Working capital changes associated with investing activities
   
107
     
(83
)
   
(7
)
   
(120
)
   
(103
)
   
81
     
(332
)
     
(251
)
Proceeds from asset dispositions
   
142
     
559
     
2,219
     
92
     
3,012
     
549
     
764
       
1,313
 
Net sales (purchases) of investments
   
(1
)
   
(484
)
   
(180
)
   
(2,245
)
   
(2,910
)
   
(935
)
   
(95
)
     
(1,030
)
Long-term collections from (advances to)
related parties and other investments
   
(88
)
   
276
     
(207
)
   
38
     
19
     
22
     
9
       
31
 
Net Cash Provided by (Used in) Investing Activities
   
(1,477
)
   
(1,461
)
   
150
     
(3,830
)
   
(6,618
)
   
(1,932
)
   
(530
)
     
(2,462
)
                                                                   
Cash Flows from Financing Activities
                                                                 
Repayment of debt
   
(19
)
   
(19
)
   
(21
)
   
(21
)
   
(80
)
   
(24
)
   
(190
)
     
(214
)
Issuance of company common stock
   
(38
)
   
2
     
(3
)
   
9
     
(30
)
   
2
     
-
       
2
 
Repurchase of company common stock
   
(752
)
   
(1,250
)
   
(749
)
   
(749
)
   
(3,500
)
   
(726
)
   
-
       
(726
)
Dividends paid
   
(350
)
   
(346
)
   
(341
)
   
(463
)
   
(1,500
)
   
(458
)
   
(455
)
     
(913
)
Other
   
(14
)
   
(41
)
   
(18
)
   
(46
)
   
(119
)
   
(24
)
   
(4
)
     
(28
)
Net Cash Provided by (Used in) Financing Activities
   
(1,173
)
   
(1,654
)
   
(1,132
)
   
(1,270
)
   
(5,229
)
   
(1,230
)
   
(649
)
     
(1,879
)
                                                                   
Effect of Exchange Rate Changes
   
75
     
(49
)
   
(94
)
   
22
     
(46
)
   
(122
)
   
29
       
(93
)
                                                                   
Net Change in Cash, Cash Equivalents and Restricted Cash
   
319
     
(273
)
   
1,261
     
(2,096
)
   
(789
)
   
(1,179
)
   
(993
)
     
(2,172
)
Cash, cash equivalents and restricted cash at beginning of period
   
6,151
     
6,470
     
6,197
     
7,458
     
6,151
     
5,362
     
4,183
       
5,362
 
Cash, Cash Equivalents and Restricted Cash at End of Period
   
6,470
     
6,197
     
7,458
     
5,362
     
5,362
     
4,183
     
3,190
       
3,190
 
                                                                   
                                                                   
                                                                   
CAPITAL EXPENDITURES AND INVESTMENTS
                                                                 
                                                                   
 Alaska
   
410
     
370
     
427
     
306
     
1,513
     
509
     
223
       
732
 
                                                                   
 Lower 48
   
834
     
936
     
843
     
781
     
3,394
     
776
     
354
       
1,130
 
                                                                   
 Canada
   
123
     
109
     
83
     
53
     
368
     
74
     
68
       
142
 
                                                                   
 Europe and North Africa
   
157
     
182
     
198
     
171
     
708
     
121
     
130
       
251
 
                                                                   
 Asia Pacific and Middle East
   
96
     
123
     
103
     
262
     
584
     
103
     
85
       
188
 
                                                                   
 Other International
   
1
     
-
     
-
     
7
     
8
     
53
     
10
       
63
 
                                                                   
 Corporate and Other
   
16
     
9
     
21
     
15
     
61
     
13
     
6
       
19
 
Total Capital Expenditures and Investments
   
1,637
     
1,729
     
1,675
     
1,595
     
6,636
     
1,649
     
876
       
2,525
 


 
2019
   
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
TOTAL SEGMENTS
                                                 
                                                   
                                                   
Production
                                                 
Total (MBOED)
   
1,361
     
1,332
     
1,366
     
1,334
     
1,348
     
1,289
     
981
       
1,135
 
                                                                   
Crude Oil (MBD)
                                                                 
Consolidated operations
   
703
     
688
     
696
     
681
     
692
     
642
     
460
       
551
 
Equity affiliates
   
12
     
14
     
14
     
14
     
13
     
12
     
14
       
13
 
Total
   
715
     
702
     
710
     
695
     
705
     
654
     
474
       
564
 
Over (under) lifting of crude oil (MBD)
   
8
     
(3
)
   
19
     
(2
)
   
6
     
(20
)
   
(9
)
     
(15
)
                                                                   
NGL (MBD)
                                                                 
Consolidated operations
   
103
     
110
     
106
     
110
     
107
     
116
     
85
       
101
 
Equity affiliates
   
7
     
8
     
8
     
8
     
8
     
7
     
8
       
7
 
Total
   
110
     
118
     
114
     
118
     
115
     
123
     
93
       
108
 
                                                                   
Bitumen (MBD)
                                                                 
Consolidated operations
   
63
     
51
     
63
     
64
     
60
     
66
     
34
       
50
 
Equity affiliates
   
-
     
-
     
-
     
-
     
-
     
-
     
-
       
-
 
Total
   
63
     
51
     
63
     
64
     
60
     
66
     
34
       
50
 
                                                                   
Natural Gas (MMCFD)
                                                                 
Consolidated operations
   
1,852
     
1,704
     
1,795
     
1,661
     
1,753
     
1,638
     
1,221
       
1,429
 
Equity affiliates
   
988
     
1,064
     
1,076
     
1,080
     
1,052
     
1,036
     
1,056
       
1,046
 
Total
   
2,840
     
2,768
     
2,871
     
2,741
     
2,805
     
2,674
     
2,277
       
2,475
 
                                                                   
Industry Prices
                                                                 
Crude Oil ($/BBL)
                                                                 
WTI
   
54.87
     
59.80
     
56.44
     
56.98
     
57.02
     
46.06
     
27.85
       
36.96
 
WCS
   
42.58
     
49.13
     
44.18
     
41.15
     
44.26
     
25.54
     
16.58
       
21.06
 
Brent dated
   
63.20
     
68.82
     
61.94
     
63.22
     
64.30
     
50.31
     
29.20
       
39.75
 
JCC ($/BBL)
   
76.98
     
63.72
     
71.59
     
66.34
     
69.66
     
65.89
     
67.71
       
66.80
 
Natural Gas ($/MMBTU)
                                                                 
Henry Hub first of month
   
3.15
     
2.64
     
2.23
     
2.50
     
2.63
     
1.95
     
1.71
       
1.83
 
                                                                   
                                                                   
Average Realized Prices
                                                                 
Total ($/BBL)
   
50.59
     
50.50
     
47.07
     
47.01
     
48.78
     
38.81
     
23.09
       
32.15
 
                                                                   
Crude Oil ($/BBL)
                                                                 
Consolidated operations
   
59.45
     
64.90
     
59.56
     
60.14
     
60.98
     
48.77
     
25.10
       
38.81
 
Equity affiliates
   
59.53
     
63.98
     
59.91
     
61.58
     
61.32
     
53.14
     
25.32
       
38.52
 
Total
   
59.45
     
64.88
     
59.57
     
60.17
     
60.99
     
48.86
     
25.10
       
38.80
 
                                                                   
NGL ($/BBL)
                                                                 
Consolidated operations
   
22.74
     
19.97
     
14.33
     
18.26
     
18.73
     
12.81
     
8.29
       
10.85
 
Equity affiliates
   
38.19
     
41.72
     
30.18
     
37.28
     
36.70
     
42.41
     
23.93
       
32.38
 
Total
   
23.85
     
21.65
     
15.59
     
19.67
     
20.09
     
14.82
     
9.88
       
12.63
 
                                                                   
Bitumen ($/BBL)
                                                                 
Consolidated operations
   
33.15
     
37.20
     
32.54
     
24.58
     
31.72
     
5.90
     
(23.11
)
     
(3.09
)
Equity affiliates
   
-
     
-
     
-
     
-
     
-
     
-
     
-
       
-
 
Total
   
33.15
     
37.20
     
32.54
     
24.58
     
31.72
     
5.90
     
(23.11
)
     
(3.09
)
                                                                   
Natural Gas ($/MCF)
                                                                 
Consolidated operations
   
5.27
     
4.08
     
3.73
     
3.88
     
4.25
     
3.60
     
2.64
       
3.19
 
Equity affiliates
   
7.31
     
5.81
     
6.40
     
5.75
     
6.29
     
5.41
     
3.90
       
4.65
 
Total
   
6.00
     
4.76
     
4.74
     
4.62
     
5.03
     
4.30
     
3.22
       
3.81
 
                                                                   
                                                                   
Exploration Expenses ($ Millions)
                                                                 
Dry holes
   
10
     
16
     
139
     
35
     
200
     
36
     
3
       
39
 
Leasehold impairment
   
17
     
25
     
154
     
25
     
221
     
31
     
-
       
31
 
Total noncash expenses
   
27
     
41
     
293
     
60
     
421
     
67
     
3
       
70
 
Other (G&A, G&G and lease rentals)
   
83
     
81
     
67
     
91
     
322
     
121
     
94
       
215
 
Total exploration expenses
   
110
     
122
     
360
     
151
     
743
     
188
     
97
       
285
 
                                                                   
U.S. exploration expenses
   
75
     
70
     
319
     
60
     
524
     
99
     
72
       
171
 
International exploration expenses
   
35
     
52
     
41
     
91
     
219
     
89
     
25
       
114
 
                                                                   
                                                                   
DD&A ($ Millions)
                                                                 
 Alaska
   
205
     
208
     
200
     
192
     
805
     
209
     
191
       
400
 
 Lower 48
   
621
     
709
     
731
     
761
     
2,822
     
707
     
548
       
1,255
 
 Canada
   
56
     
48
     
63
     
63
     
230
     
69
     
66
       
135
 
 Europe and North Africa
   
273
     
173
     
222
     
218
     
886
     
196
     
167
       
363
 
 Asia Pacific and Middle East
   
375
     
338
     
332
     
240
     
1,285
     
217
     
170
       
387
 
 Other International
   
-
     
-
     
-
     
-
     
-
     
-
     
-
       
-
 
 Corporate and Other
   
16
     
14
     
18
     
14
     
62
     
13
     
16
       
29
 
Total DD&A
   
1,546
     
1,490
     
1,566
     
1,488
     
6,090
     
1,411
     
1,158
       
2,569
 


 
2019
   
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
PRODUCTION
                                                 
                                                   
                                                   
Crude Oil (MBD)
                                                 
Alaska
   
210
     
199
     
190
     
205
     
202
     
198
     
153
       
175
 
Lower 48
   
245
     
269
     
277
     
274
     
266
     
270
     
166
       
218
 
Canada
   
1
     
1
     
1
     
1
     
1
     
2
     
5
       
4
 
Norway
   
89
     
73
     
91
     
85
     
84
     
84
     
75
       
80
 
United Kingdom
   
25
     
20
     
19
     
-
     
16
     
-
     
-
       
-
 
Libya
   
38
     
37
     
39
     
39
     
38
     
9
     
-
       
4
 
Europe and North Africa
   
152
     
130
     
149
     
124
     
138
     
93
     
75
       
84
 
Australia/Timor-Leste
   
6
     
7
     
6
     
5
     
6
     
4
     
3
       
4
 
China
   
41
     
37
     
35
     
29
     
35
     
31
     
30
       
31
 
Indonesia
   
2
     
2
     
2
     
2
     
2
     
2
     
2
       
2
 
Malaysia
   
46
     
43
     
36
     
41
     
42
     
42
     
26
       
33
 
Equity affiliates
   
12
     
14
     
14
     
14
     
13
     
12
     
14
       
13
 
AP/ME
   
107
     
103
     
93
     
91
     
98
     
91
     
75
       
83
 
Total
   
715
     
702
     
710
     
695
     
705
     
654
     
474
       
564
 
                                                                   
NGL (MBD)
                                                                 
Alaska
   
17
     
17
     
11
     
16
     
15
     
19
     
13
       
16
 
Lower 48
   
74
     
82
     
84
     
85
     
81
     
89
     
64
       
77
 
Canada
   
-
     
1
     
-
     
-
     
-
     
1
     
2
       
1
 
Norway
   
4
     
3
     
4
     
5
     
4
     
5
     
5
       
5
 
United Kingdom
   
4
     
3
     
3
     
-
     
3
     
-
     
-
       
-
 
Europe and North Africa
   
8
     
6
     
7
     
5
     
7
     
5
     
5
       
5
 
Australia/Timor-Leste
   
4
     
4
     
4
     
4
     
4
     
2
     
1
       
2
 
Equity affiliates
   
7
     
8
     
8
     
8
     
8
     
7
     
8
       
7
 
AP/ME
   
11
     
12
     
12
     
12
     
12
     
9
     
9
       
9
 
Total
   
110
     
118
     
114
     
118
     
115
     
123
     
93
       
108
 
                                                                   
Bitumen (MBD)
                                                                 
 Canada
   
63
     
51
     
63
     
64
     
60
     
66
     
34
       
50
 
Total
   
63
     
51
     
63
     
64
     
60
     
66
     
34
       
50
 
                                                                   
Natural Gas (MMCFD)
                                                                 
Alaska
   
8
     
7
     
6
     
8
     
7
     
8
     
8
       
8
 
Lower 48
   
568
     
593
     
649
     
677
     
622
     
679
     
486
       
582
 
Canada
   
7
     
8
     
9
     
11
     
9
     
20
     
40
       
30
 
Norway
   
263
     
244
     
226
     
284
     
254
     
297
     
263
       
280
 
United Kingdom
   
310
     
247
     
218
     
-
     
193
     
-
     
-
       
-
 
Libya
   
31
     
27
     
29
     
36
     
31
     
13
     
1
       
7
 
Europe and North Africa
   
604
     
518
     
473
     
320
     
478
     
310
     
264
       
287
 
Australia/Timor-Leste
   
273
     
202
     
222
     
203
     
225
     
237
     
114
       
175
 
Indonesia
   
311
     
314
     
324
     
333
     
321
     
309
     
266
       
288
 
Malaysia
   
81
     
62
     
112
     
109
     
91
     
75
     
43
       
59
 
Equity affiliates
   
988
     
1,064
     
1,076
     
1,080
     
1,052
     
1,036
     
1,056
       
1,046
 
AP/ME
   
1,653
     
1,642
     
1,734
     
1,725
     
1,689
     
1,657
     
1,479
       
1,568
 
Total
   
2,840
     
2,768
     
2,871
     
2,741
     
2,805
     
2,674
     
2,277
       
2,475
 
                                                                   
Total (MBOED)
                                                                 
Alaska
   
228
     
217
     
202
     
222
     
218
     
218
     
167
       
192
 
Lower 48
   
414
     
450
     
469
     
472
     
451
     
472
     
311
       
392
 
Canada
   
65
     
54
     
66
     
67
     
63
     
72
     
48
       
60
 
Norway
   
137
     
117
     
133
     
137
     
131
     
139
     
124
       
132
 
United Kingdom
   
80
     
64
     
58
     
-
     
50
     
-
     
-
       
-
 
Libya
   
43
     
42
     
44
     
45
     
43
     
11
     
-
       
5
 
Europe and North Africa
   
260
     
223
     
235
     
182
     
224
     
150
     
124
       
137
 
Australia/Timor-Leste
   
56
     
45
     
47
     
43
     
48
     
46
     
24
       
35
 
China
   
41
     
37
     
35
     
29
     
35
     
31
     
30
       
31
 
Indonesia
   
54
     
54
     
56
     
58
     
56
     
54
     
46
       
50
 
Malaysia
   
60
     
53
     
55
     
59
     
57
     
54
     
33
       
43
 
Equity affiliates
   
183
     
199
     
201
     
202
     
196
     
192
     
198
       
195
 
AP/ME
   
394
     
388
     
394
     
391
     
392
     
377
     
331
       
354
 
Total
   
1,361
     
1,332
     
1,366
     
1,334
     
1,348
     
1,289
     
981
       
1,135
 


 
2019
   
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
AVERAGE REALIZED PRICES
                                                 
                                                   
                                                   
Crude Oil ($/BBL)
                                                 
Consolidated operations
                                                 
Alaska
   
62.81
     
67.57
     
62.78
     
63.43
     
64.12
     
54.78
     
26.81
       
42.52
 
Lower 48
   
53.15
     
59.17
     
54.38
     
54.34
     
55.30
     
40.97
     
19.87
       
32.92
 
Canada
   
-
     
-
     
-
     
-
     
40.87
     
-
     
8.69
       
15.39
 
Norway
   
63.16
     
70.09
     
64.00
     
64.25
     
65.19
     
54.92
     
32.32
       
43.98
 
United Kingdom
   
59.74
     
69.22
     
63.32
     
-
     
64.68
     
-
     
-
       
-
 
Libya
   
63.22
     
68.95
     
62.30
     
63.95
     
64.47
     
64.21
     
-
       
64.21
 
Europe and North Africa
   
62.83
     
69.65
     
63.47
     
64.15
     
64.94
     
55.53
     
32.32
       
44.70
 
Australia/Timor-Leste
   
59.39
     
62.22
     
57.02
     
58.32
     
59.29
     
47.35
     
47.21
       
47.34
 
China
   
59.23
     
65.40
     
59.07
     
63.17
     
61.26
     
54.10
     
25.09
       
39.69
 
Indonesia
   
47.07
     
51.62
     
48.79
     
50.35
     
49.55
     
29.33
     
30.64
       
29.91
 
Malaysia
   
67.33
     
73.99
     
66.26
     
69.74
     
69.45
     
57.67
     
30.59
       
46.42
 
AP/ME
   
62.94
     
69.78
     
62.01
     
65.90
     
65.02
     
54.71
     
27.98
       
43.02
 
Total consolidated operations
   
59.45
     
64.90
     
59.56
     
60.14
     
60.98
     
48.77
     
25.10
       
38.81
 
Equity affiliates
   
59.53
     
63.98
     
59.91
     
61.58
     
61.32
     
53.14
     
25.32
       
38.52
 
Total
   
59.45
     
64.88
     
59.57
     
60.17
     
60.99
     
48.86
     
25.10
       
38.80
 
                                                                   
NGL ($/BBL)
                                                                 
Consolidated operations
                                                                 
Lower 48
   
20.66
     
17.91
     
13.04
     
16.27
     
16.83
     
11.85
     
6.95
       
9.81
 
Canada
   
-
     
-
     
-
     
-
     
19.87
     
-
     
1.64
       
1.89
 
Norway
   
33.37
     
29.42
     
24.38
     
32.42
     
30.67
     
21.54
     
16.76
       
18.75
 
United Kingdom
   
27.65
     
32.75
     
22.20
     
-
     
27.71
     
-
     
-
       
-
 
Europe and North Africa
   
31.15
     
32.00
     
23.20
     
32.42
     
29.37
     
21.54
     
16.76
       
18.75
 
Australia/Timor-Leste
   
40.13
     
39.97
     
30.13
     
37.20
     
37.85
     
39.34
     
27.90
       
33.21
 
AP/ME
   
40.13
     
39.97
     
30.13
     
37.20
     
37.85
     
39.34
     
27.90
       
33.21
 
Total consolidated operations
   
22.74
     
19.97
     
14.33
     
18.26
     
18.73
     
12.81
     
8.29
       
10.85
 
Equity affiliates
   
38.19
     
41.72
     
30.18
     
37.28
     
36.70
     
42.41
     
23.93
       
32.38
 
Total
   
23.85
     
21.65
     
15.59
     
19.67
     
20.09
     
14.82
     
9.88
       
12.63
 
                                                                   
Bitumen ($/BBL)
                                                                 
 Canada*
   
33.15
     
37.20
     
32.54
     
24.58
     
31.72
     
5.90
     
(23.11
)
     
(3.09
)
Total
   
33.15
     
37.20
     
32.54
     
24.58
     
31.72
     
5.90
     
(23.11
)
     
(3.09
)
                                                                   
Natural Gas ($/MCF)
                                                                 
Consolidated operations
                                                                 
Alaska
   
3.42
     
3.19
     
3.01
     
3.09
     
3.19
     
3.07
     
2.56
       
2.82
 
Lower 48
   
2.74
     
2.10
     
1.80
     
1.92
     
2.12
     
1.48
     
1.18
       
1.36
 
Canada
   
-
     
-
     
-
     
-
     
0.49
     
-
     
0.79
       
1.05
 
Norway
   
6.39
     
4.31
     
3.37
     
4.61
     
4.72
     
3.65
     
2.21
       
3.00
 
United Kingdom
   
6.83
     
4.49
     
3.69
     
-
     
5.19
     
-
     
-
       
-
 
Libya
   
4.92
     
4.79
     
4.83
     
4.91
     
4.87
     
4.53
     
-
       
4.53
 
Europe and North Africa
   
6.55
     
4.42
     
3.60
     
4.63
     
4.92
     
3.68
     
2.21
       
3.03
 
Australia/Timor-Leste**
   
0.83
     
0.78
     
0.76
     
0.77
     
0.79
     
6.43
     
10.62
       
10.04
 
Indonesia
   
6.69
     
7.19
     
6.69
     
6.66
     
6.81
     
6.58
     
4.69
       
5.70
 
Malaysia
   
3.84
     
3.57
     
3.44
     
3.47
     
3.56
     
2.93
     
2.22
       
2.67
 
AP/ME
   
6.36
     
5.89
     
5.78
     
5.60
     
5.91
     
5.94
     
4.74
       
5.45
 
Total consolidated operations
   
5.27
     
4.08
     
3.73
     
3.88
     
4.25
     
3.60
     
2.64
       
3.19
 
Equity affiliates
   
7.31
     
5.81
     
6.40
     
5.75
     
6.29
     
5.41
     
3.90
       
4.65
 
Total
   
6.00
     
4.76
     
4.74
     
4.62
     
5.03
     
4.30
     
3.22
       
3.81
 
*Average realized prices exclude additional value realized from third-party purchases and sales for optimization of our pipeline capacity between Canada and the U.S. Gulf Coast.
 
**Excludes transfers to Darwin LNG plant.
                                                                 


 
2019
   
2020
 
   
1st Qtr
   
2nd Qtr
   
3rd Qtr
   
4th Qtr
   
Full Year
   
1st Qtr
   
2nd Qtr
 
3rd Qtr
4th Qtr
YTD
 
CORPORATE AND OTHER
                                                 
                                                   
                                                   
Corporate and Other Earnings (Loss) ($ Millions)
   
271
     
(193
)
   
(14
)
   
(26
)
   
38
     
(1,775
)
   
185
       
(1,590
)
                                                                   
                                                                   
Detail of Earnings (Loss) ($ Millions)
                                                                 
Net interest expense
   
(196
)
   
(131
)
   
(123
)
   
(154
)
   
(604
)
   
(155
)
   
(174
)
     
(329
)
Corporate G&A expenses
   
(65
)
   
(49
)
   
(34
)
   
(104
)
   
(252
)
   
50
     
(90
)
     
(40
)
Technology*
   
96
     
(10
)
   
43
     
(6
)
   
123
     
1
     
(9
)
     
(8
)
Other
   
436
     
(3
)
   
100
     
238
     
771
     
(1,671
)
   
458
       
(1,213
)
Total
   
271
     
(193
)
   
(14
)
   
(26
)
   
38
     
(1,775
)
   
185
       
(1,590
)
*Includes investment in new technologies or businesses outside of our normal scope of operations and licensing revenues.
           
                                                                   
                                                                   
Before-Tax Net Interest Expense ($ Millions)
                                                                 
Interest expense
   
(243
)
   
(178
)
   
(200
)
   
(214
)
   
(835
)
   
(216
)
   
(216
)
     
(432
)
Capitalized interest
   
10
     
13
     
16
     
18
     
57
     
14
     
14
       
28
 
Interest revenue
   
32
     
33
     
45
     
39
     
149
     
42
     
22
       
64
 
Total
   
(201
)
   
(132
)
   
(139
)
   
(157
)
   
(629
)
   
(160
)
   
(180
)
     
(340
)
                                                                   
Debt
                                                                 
Total debt ($ Millions)
   
14,945
     
14,923
     
14,920
     
14,895
     
14,895
     
14,973
     
14,998
       
14,998
 
Debt-to-capital ratio (%)
   
31
%
   
31
%
   
30
%
   
30
%
   
30
%
   
32
%
   
32
%
     
32
%
                                                                   
Equity ($ Millions)
   
32,981
     
33,074
     
35,239
     
35,050
     
35,050
     
31,387
     
31,493
       
31,493
 


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