2020.
2019.
5
|
|
Millions of Dollars December 31 ASU No. 2018-02 January 1 2018 Adjustments 2019 Equity Accumulated other comprehensive loss $ (6,063) (40) (6,103) Retained earnings 34,010 40 34,050 For additional information regarding the impact of the adoption of ASU No. 2018-02, see Note 16—Accumulated Other Comprehensive Loss. Note 4—Inventories Inventories consisted of the following: Millions of Dollars September 30 December 31 2019 2018 Crude oil and natural gas $ 399 432 Materials and supplies 556 575 $ 955 1,007 55420182019 Annual Reporton Form 10-K.2016-02, “Leases,2016-13, “Measurement of Credit Losseson Financial set forth by the provisions of ASU No. 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” ASU No. 2018-10, “Codification Improvements to Topic 842, Leases,” ASU No. 2018-11, “Targeted Improvements,” ASU No. 2018-20, “Narrow-Scope Improvements for Lessors,” and ASU No. 2019-01, “Codification Improvements,” collectively FASB ASC Topic 842, “Leases” (ASC Topic 842), 2019.ASC Topic 842 establishes comprehensive accounting and2020 reporting requirements leasing arrangements, supersedes the existing requirements in FASB ASC Topic 840, “Leases” (ASC Topic 840), and requires lesseescredit losses. recognize substantially all lease assets and lease liabilities on the balance sheet. The provisions of ASC Topic 842 also modify the definition of a lease and outline requirements for recognition, measurement, presentation and disclosure of leasing arrangements by both lessees and lessors.We adopted ASC Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method, which permits us to apply the provisions of ASC Topic 842 to leasing arrangements existing at or entered into after January 1, 2019, and present in our financial statements comparative periods prior to January 1, 2019 understatements.requirements of ASC Topic 840. In addition, we elected to adopt the package of optional transition-related practical expedients, which among other things, allows us to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. Furthermore, we elected not to record assets and liabilities on our consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less.The primary impact of applying ASC Topic 842 is the initial recognition of $998 million of lease liabilities and corresponding right-of-use assets on our consolidated balance sheet as of January 1, 2019, for leases classified as operating leases under ASC Topic 840,loss rates as well as enhanced disclosure considerationof our leasing arrangements. Our accounting treatment for finance leases remains unchanged. In addition, there is no cumulative effect to retained earnings or other components of equity recognized as of January 1, 2019,current and the adoption of ASC Topic 842 did not future conditions that couldimpact the presentation of our consolidated income statement or statement of cash flows. See Note 15—Non-Mineral Leases for additional information related to the adoption of ASC Topic 842.We adopted the provisions of FASB ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” beginning January 1, 2019. The ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax CutsJobs Act, eliminating the stranded tax effects. The cumulative effect to our consolidated balance sheet at January 1, 2019 for the adoption of ASU No. 2018-02 was as follows:liquidity.6Variable Interest EntitiesWe hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. Information on our significant VIEs follows:Australia Pacific LNG Pty Ltd (APLNG)APLNG is considered a VIE, as it has entered into certain contractual arrangements that provide it with additional forms of subordinated financial support. We are not the primary beneficiary of APLNG because we share with Origin Energy and China Petrochemical Corporation (Sinopec) the power to direct the key activities of APLNG that most significantly impact its economic performance, which involve activities related to the production and commercialization of CBM, as well as LNG processing and export marketing. As a result, we do not consolidate APLNG, and it is accounted for as an equity method investment.As of September 30, 2019, we have not provided any financial support to APLNG other than amounts previously contractually required. Unless we elect otherwise, we have no requirement to provide liquidity or purchase the assets of APLNG. See Note 6—Investments, Loans and Long-Term Receivables, and Note 11—Guarantees, for additional information.Marine Well Containment Company, LLC (MWCC)MWCC provides well containment equipment and technology and related services in the deepwater U.S. Gulf of Mexico. Its principal activities involve the development and maintenance of rapid-response hydrocarbon well containment systems that are deployable in the Gulf of Mexico on a call-out basis. We have a 10 percent ownership interest in MWCC, and it is accounted for as an equity method investment because MWCC is a limited liability company in which we are a Founding Member and exercise significant influence through our permanent seat on the ten-member Executive Committee responsible for overseeing the affairs of MWCC. In 2016, MWCC executed a $154 million term loan financing arrangement with an external financial institution whose terms required the financing be secured by letters of credit provided by certain owners of MWCC, including ConocoPhillips. In connection with the financing transaction, we issued a letter of credit of $22 million which can be drawn upon in the event of a default by MWCC on its obligation to repay the proceedsInventoriesterm loan. MWCC is considered a VIE, as it has entered into arrangements that provide it with additional formsfollowing:subordinated financial support. We are not the primary beneficiaryDollarsdo not consolidate MWCC because we share the power to govern the businessnatural gasoperation of the company and to undertake certain obligations that most significantly impact its economic performance with nine other unaffiliated owners of MWCC.Based on inputs related to the fair value of MWCC observed in the second quarter of 2019, we reduced the carrying value of our equity method investment in MWCC to $30 million and recorded a before-tax impairment of $95 million which is included in the “Equity in earnings of affiliates” line on our consolidated income statement. For additional information see Note 14—Fair Value Measurement.7At September 30, 2019, the carrying value of our equity method investment in MWCC was $27 million. We have not provided any financial support to MWCC other than amounts previously contractually required. Unless we elect otherwise, we have no requirement to provide liquidity or purchase the assets of MWCC. $230 $$292 $SeptemberJune 30, 20192020 and December2018, 2019,respectively.Due to a precipitous decline in commodityprices beginning in March this year, weestimated excess adjustment was includedin the “Purchased commodities” line on ourconsolidated
Note 5—Asset Dispositions
Asset Dispositions
In April 2019, we entered into an agreement to sell two ConocoPhillips U.K. subsidiaries to Chrysaor E&P Limited for $2.675 billion plus interest and customary adjustments, withbased on an effective date of January1, 2018. On September 30, 2019, we completed the sale forreceived proceeds of $2.2 billion. In$
In January 2019, we entered into agreements to sell our 12.4 percent ownershipWaddell Ranch interests in the Golden Pass LNG TerminalPermian Basin for $
In the second quarter of6—Investment in Cenovus Energy
8
Consideration for the transaction included a five-year uncapped contingent payment. The contingent payment, calculated on a quarterly basis, is $6 million CAD for every $1 CAD by which the WCS quarterly average crude price exceeds $52 CAD per barrel. Contingent payments received during the five-year period are recorded as “Gain on dispositions” on our consolidated income statement and reflected in our Canada segment. We recorded gains on dispositions for these contingent payments of $95 million and $104 million in the nine-month periods of 2018 and 2019, respectively.
Planned Disposition
In October 2019, we announced an agreement to sell the subsidiaries that hold our Australia-West assets and operations to Santos for $1.39 billion, plus customary adjustments, with an effective date of January 1, 2019. In addition, we will receive a payment of $75 million upon final investment decision of the Barossa development project. These subsidiaries hold our 37.5 percent interest in the Barossa Project and Caldita Field, our 56.9 percent interest in the Darwin LNG Facility and Bayu-Undan Field, our 40 percent interest in the Greater Poseidon Fields, and our 50 percent interest in the Athena Field. At September 30, 2019, the net carrying value was approximately $0.6 billion, consisting primarily of $1.2 billion of PP&E and $0.2 billion of cash and working capital, offset by $0.6 billion of ARO and $0.2 billion of deferred tax liabilities. This transaction met held for sale criteria in October 2019 and is expected to be completed in the first quarter of 2020, subject to regulatory approvals and other specific conditions precedent. Results of operations for the subsidiaries to be sold are reported within our Asia Pacific and Middle East segment.
Note 6—Investments, Loans and Long-Term Receivables
APLNG
APLNG executed project financing agreements for an $8.5 billion project finance facility in 2012. The $8.5 billion project finance facility was initially composed of financing agreements executed by APLNG with the Export-Import Bank of the United States for approximately $2.9 billion, the Export-Import Bank of China for approximately $2.7 billion, and a syndicate of Australian and international commercial banks for approximately $2.9 billion. All amounts have been drawn from the facility. APLNG made its first principal and interest repayment in March 2017 and is scheduled to make bi-annual payments until March 2029.
APLNG made a voluntary repayment of $1.4 billion to the Export-Import Bank of China in September 2018. At the same time, APLNG obtained a United States Private Placement (USPP) bond facility of $1.4 billion. APLNG made its first interest payment related to this facility in March 2019, and principal payments are scheduled to commence in September 2023, with bi-annual payments due on the facility until September 2030.
During the first quarter of 2019, APLNG refinanced $3.2 billion of existing project finance debt through two transactions. As a result of the first transaction, APLNG obtained a commercial bank facility of $2.6 billion. APLNG made its first principal and interest repayment in September 2019 with bi-annual payments due on the facility until March 2028. Through the second transaction, APLNG obtained a USPP bond facility of $0.6 billion. APLNG made its first interest payment in September 2019, and principal payments are scheduled to commence in September 2023, with bi-annual payments due on the facility until September 2030.
In conjunction with the $3.2 billion debt obtained during the first quarter of 2019 to refinance existing project finance debt, APLNG made voluntary repayments of $2.2 billion and $1.0 billion to a syndicate of Australian and international commercial banks and the Export-Import Bank of China, respectively.
At September 30, 2019, a balance of $6.7 billion was outstanding on the facilities. See Note 11—Guarantees, for additional information.
APLNG is considered a VIE, as it has entered into certain contractual arrangements that provide it with additional forms of subordinated financial support. See Note 3—Variable Interest Entities, for additional information.
At September 30, 2019, the carrying value of our equity method investment in APLNG was $7,410 million. The balance is included in the “Investments and long-term receivables” line on our consolidated balance sheet.
9
included
Loans and Long-Term Receivables
As part of our normal ongoing business operations, and consistent with industry practice, we enter into numerous agreements with other parties to pursue business opportunities. Included in such activity are loans made to certain affiliated and non-affiliated companies. At September 30, 2019, significant loans to affiliated companies included $335 million in project financing to Qatar Liquefied Gas Company Limited (3) (QG3).
On our consolidated balance sheet, the long-term portion of these loans is included in the “Loans and advances—related parties” line, while the short-term portion is in the “Accounts and notes receivable—related parties” line.
Note 7—Investment in Cenovus Energy
On May 17, 2017, we completed the sale of our 50 percent nonoperated interest in the FCCL Partnership, as well as the majority of our western Canada gas assets to Cenovus Energy. Consideration for the transaction included 208
Our investment on our consolidated balance sheet as of September 30, 2019, is carried at fair value of $1.95 billion, reflecting the closing price of Cenovus Energy shares on the NYSE of $9.38 per share on the last tradingday of the quarter, an increasea decrease of $116 million$
Insignificant decreasein the thirdoutlook for current and long-term naturalgas
statement and is not reflected in the table above.
days
10
December 31, 2018.
2020.
At
In conjunction with
13
for taxes and environmental liabilities, employee claims and litigation. The terms of these indemnifications vary greatly. liabilities.The majority of these indemnifications are relatedto tax issues and the
14
in sharing cleanup costs with other financiallysound companies.Many of the sites at which we are potentially
15
government of Venezuela to pay ConocoPhillips approximately $8.7 $
Annulment proceedings are underway.
In February 2017, the ICSID Tribunal unanimously awarded Burlington Resources, Inc., a wholly owned subsidiary of ConocoPhillips $380 million for Ecuador’s unlawful expropriation of Burlington’s investment in Blocks 7is seeking
In June 2017, FAR Ltd. initiated arbitration before the ICC against ConocoPhillips Senegal B.V., now Woodside Senegal B.V., in connection ONRR claims.The appeals are pending
In late2016 in New Mexico federal court afterits appeal was denied by the Interior Boardof Land Appeals.
In 2017 and 2018, cities, counties, and a state government governmentsin California, New York, Washington,Rhode
16
courts and appeals are pending. subject to appeal.Lawsuits filed by otherthe cities and counties in California,Washington, and WashingtonHawaii are
appeal.
Derivative Instruments
Our
The following table presents the gross fair values of our commodity derivatives, excluding collateral, and the line items where they appear on our consolidated balance sheet: | ||||
|
|
|
|
|
| Millions of Dollars | |||
| September 30 |
| December 31 | |
| 2019 |
| 2018 | |
Assets |
|
|
|
|
Prepaid expenses and other current assets | $ | 224 |
| 410 |
Other assets |
| 39 |
| 40 |
Liabilities |
|
|
|
|
Other accruals |
| 236 |
| 370 |
Other liabilities and deferred credits |
| 31 |
| 30 |
17
our commodity derivatives, excludingcollateral, and the
The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated income statement were: | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||
|
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | ||||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues |
| $ | 4 |
| (29) |
| 68 |
| (6) |
Other income |
|
| 3 |
| 3 |
| 4 |
| 12 |
Purchased commodities |
|
| (9) |
| 18 |
| (60) |
| 15 |
The table below summarizes our material net exposures resulting from outstanding commodity derivative contracts: | ||||
|
|
|
|
|
| Open Position | |||
Long/(Short) | ||||
| September 30 |
| December 31 | |
| 2019 |
| 2018 | |
Commodity |
|
|
|
|
Natural gas and power (billions of cubic feet equivalent) |
|
|
|
|
Fixed price |
| (17) |
| (17) |
Basis |
| (28) |
| (1) |
line items where they appear on our consolidatedbalance sheet:
The following table presents the gross fair values of our foreign currency exchange derivatives, excluding collateral, and the line items where they appear on our consolidated balance sheet: | ||||
|
|
|
|
|
| Millions of Dollars | |||
| September 30 |
| December 31 | |
| 2019 |
| 2018 | |
Assets |
|
|
|
|
Prepaid expenses and other current assets | $ | 1 |
| 7 |
Liabilities |
|
|
|
|
Other accruals |
| 4 |
| 6 |
Other liabilities and deferred credits |
| 5 |
| - |
18
our foreign currency exchange derivatives,excluding
The (gains) losses from foreign currency exchange derivatives incurred, and the line item where they appear on our consolidated income statement were: | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||
|
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | ||||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction (gains) losses |
| $ | (24) |
| (2) |
| (3) |
| (5) |
We had the following net notional position of outstanding foreign currency exchange derivatives: | ||||
|
|
|
|
|
| In Millions | |||
Notional Currency | ||||
|
| September 30 |
| December 31 |
| 2019 |
| 2018 | |
Foreign Currency Exchange Derivatives |
|
|
|
|
Buy U.S. dollar, sell Norwegian krone | USD | 18 |
| - |
Sell British pound, buy Euro | GBP | 1 |
| - |
Sell U.S. dollar, buy British pound | USD | - |
| 805 |
Sell British pound, buy other currencies* | GBP | - |
| 21 |
Sell Canadian dollar, buy U.S. dollar | CAD | 1,347 |
| 1,242 |
*Primarily euro and Norwegian krone. |
|
|
|
|
collateral, and the line items where they appearon our consolidated balance sheet:
USD. In the first quarter of 2020, we entered into forward currency exchange contracts
Deposited funds can be
Government
19
These financial instruments appear in the “Cash and cash equivalents” line
| Millions of Dollars | |||||||
| Carrying Amount | |||||||
| Cash and Cash Equivalents |
| Short-Term Investments | |||||
| September 30 |
| December 31 |
| September 30 |
| December 31 | |
| 2019 | 2018 |
| 2019 |
| 2018 | ||
|
|
|
|
|
|
|
|
|
Cash | $ | 651 |
| 876 |
|
|
|
|
Time deposits |
|
|
|
|
|
|
|
|
Remaining maturities from 1 to 90 days |
| 3,650 |
| 3,509 |
| 384 |
| - |
Remaining maturities more than 90 days |
|
|
|
|
| 450 |
| - |
Commercial paper |
|
|
|
|
|
|
|
|
Remaining maturities from 1 to 90 days |
| 1,550 |
| 229 |
| 74 |
| 248 |
Government obligations |
|
|
|
|
|
|
|
|
Remaining maturities from 1 to 90 days |
| 1,342 |
| 1,301 |
| - |
| - |
| $ | 7,193 |
| 5,915 |
| 908 |
| 248 |
specific identification method.
20
If our credit rating
2019.
|
| Millions of Dollars | |||||||||||||||
|
| September 30, 2019 |
| December 31, 2018 | |||||||||||||
|
| Level 1 |
| Level 2 |
| Level 3 |
| Total |
| Level 1 |
| Level 2 |
| Level 3 |
| Total | |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Investment in Cenovus Energy | $ | 1,951 |
| - |
| - |
| 1,951 |
| 1,462 |
| - |
| - |
| 1,462 | |
Commodity derivatives |
| 153 |
| 86 |
| 24 |
| 263 |
| 236 |
| 181 |
| 33 |
| 450 | |
Total assets | $ | 2,104 |
| 86 |
| 24 |
| 2,214 |
| 1,698 |
| 181 |
| 33 |
| 1,912 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Commodity derivatives | $ | 169 |
| 82 |
| 16 |
| 267 |
| 225 |
| 145 |
| 30 |
| 400 | |
Total liabilities | $ | 169 |
| 82 |
| 16 |
| 267 |
| 225 |
| 145 |
| 30 |
| 400 | |
21
Dollars
The following table summarizes those commodity derivative balances subject to the right of setoff as | ||||||||||||||
presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for | ||||||||||||||
multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of setoff exists. | ||||||||||||||
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|
|
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| Millions of Dollars | |||||||||||||
|
|
|
|
|
| Amounts Subject to Right of Setoff | ||||||||
| Gross |
| Amounts Not |
|
|
| Gross |
| Net |
|
|
|
| |
| Amounts |
| Subject to |
| Gross | Amounts |
| Amounts |
| Cash |
| Net | ||
| Recognized |
| Right of Setoff |
| Amounts | Offset |
| Presented |
| Collateral |
| Amounts | ||
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets | $ | 263 |
| 7 |
| 256 |
| 171 |
| 85 |
| - |
| 85 |
Liabilities |
| 267 |
| - |
| 267 |
| 171 |
| 96 |
| 21 |
| 75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets | $ | 450 |
| 9 |
| 441 |
| 280 |
| 161 |
| - |
| 161 |
Liabilities |
| 400 |
| 4 |
| 396 |
| 280 |
| 116 |
| 10 |
| 106 |
|
|
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|
|
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|
|
|
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|
At September 30, 2019 and December 31, 2018, we did not present any amounts gross on our consolidated balance sheet where we had the right of setoff. | ||||||||||||||
Non-Recurring Fair Value Measurement |
|
|
|
|
|
|
|
|
The following table summarizes the fair value hierarchy by major category and date of remeasurement for assets accounted for at fair value on a non-recurring basis: | ||||||||
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||
|
|
|
| Fair Value Measurements Using |
|
| ||
| Fair Value |
| Level 1 Inputs |
| Level 2 Inputs |
| Before-Tax Loss | |
Equity method investments |
|
|
|
|
|
|
|
|
March 31, 2019 | $ | 171 |
| 171 |
| - |
| 60 |
May 31, 2019 |
| 30 |
| - |
| 30 |
| 95 |
June 30, 2020
Duringprincipal
22
The following table summarizes the net fair value of financial instruments (i.e., adjusted where the right of setoff exists for commodity derivatives): Millions of Dollars Carrying Amount Fair Value September 30 December 31 September 30 December 31 2019 2018 2019 2018 Financial assets Investment in Cenovus Energy $ 1,951 1,462 1,951 1,462 Commodity derivatives 92 170 92 170 Total loans and advances—related parties 336 468 336 468 Financial liabilities Total debt, excluding finance (capital) leases 14,179 14,191 18,131 16,147 Commodity derivatives 75 110 75 110our consolidatedthe balanceFor those investments classified as availablefor sale debt securities,our consolidatedthe balance sheet approximates fairvalue.The valuation technique and methods used toEnergy shares:Energy: See Note 7—6—Investment inCenovus Energy for a discussion of the6—5—Investments, Loans and Long-Termour consolidatedthe balancesheet approximates fair value.Note 15—Non-Mineral Leases
Certain arrangements may contain both leaseright of
23
we have elected to adopt the optional practical expedient not to separate lease components apart from non-lease components for accounting purposes. This policy election has been adopted for each of the company’s leased asset classes existing as of the effective date and subject to the transition provisions of ASC Topic 842 and will be applied to all new or modified leases executed on or after January 1, 2019. For contractual arrangements executed in subsequent periods involving a new leased asset class, the company will determine at contract inception whether it will apply the optional practical expedient to the new leased asset class.
Leases are evaluated for classification as operating or339
We often enter into leasing arrangements acting in the capacity as operator for and/or on behalf of certain oil and gas joint ventures of undivided interests. If the lease arrangement can be legally enforced only against us as operator and there is no separate arrangement to sublease the underlying leased asset to our coventurers, we recognize at lease commencement a right-of-use asset and corresponding lease liability on our consolidated balance sheet on a gross basis. While we record lease costs on a gross basis in our consolidated income statement and statement of cash flows, such costs are offset by the reimbursement we receive from our coventurers for their share of the lease cost as the underlying leased asset is utilized in joint venture activities. As a result, lease cost is presented in our consolidated income statement and statement of cash flows on a proportional basis. If we are a nonoperating coventurer, we recognize a right-of-use asset and corresponding lease liability only if we were a specified contractual party to the lease arrangement and the arrangement could be legally enforced against us. In this circumstance, we would recognize both the right-of-use asset and corresponding lease liability on our consolidated balance sheet on a proportional basis consistent with our undivided interest ownership in the related joint venture.
The company has historically recorded certain finance leases executed by investee companies accounted for under the proportionate consolidation method of accounting on its consolidated balance sheet on a proportional basis consistent with its ownership interest in the investee company. In addition, the company has historically recorded finance lease assets and liabilities associated with certain oil and gas joint ventures on a proportional basis pursuant to accounting guidance applicable prior to January 1, 2019. As of
In connection with our adoption of ASC Topic 842, we have recorded on our consolidated balance sheet $57 million of operating leases executed by investee companies accounted for under the proportionate consolidation method of accounting on a proportional basis consistent with our ownership interest in the investee company.
2019
24
(350)
|
| Millions of Dollars | ||
|
| Carrying Amount | ||
|
| Operating Leases |
| Finance Leases |
Amounts recognized in line items in our Consolidated |
|
|
|
|
Balance Sheet upon adoption of ASC Topic 842 |
|
|
|
|
|
|
|
|
|
Right-of-Use Assets |
|
|
|
|
Properties, plants and equipment |
|
|
|
|
Gross |
|
| $ | 1,044 |
Accumulated depreciation, depletion and amortization |
|
|
| (550) |
Net properties, plants and equipment as of December 31, 2018 |
|
| $ | 494 |
|
|
|
|
|
Adoption of ASC Topic 842 as of January 1, 2019 | $ | 998 |
|
|
|
|
|
|
|
Lease Liabilities |
|
|
|
|
Short-term debt |
|
| $ | 79 |
Long-term debt |
|
|
| 698 |
Total finance leases debt as of December 31, 2018 |
|
| $ | 777 |
|
|
|
|
|
Adoption of ASC Topic 842 as of January 1, 2019 | $ | 998 |
|
|
|
|
|
|
|
Amounts recognized in line items in our Consolidated |
|
|
|
|
Balance Sheet at September 30, 2019 |
|
|
|
|
|
|
|
|
|
Right-of-Use Assets |
|
|
|
|
Properties, plants and equipment |
|
|
|
|
Gross |
|
| $ | 1,069 |
Accumulated depreciation, depletion and amortization |
|
|
| (634) |
Net properties, plants and equipment* |
|
| $ | 435 |
Other assets** | $ | 805 |
|
|
* Includes proportionately consolidated finance lease assets (net of accumulated depreciation, depletion and amortization) of $359 million. **As a result of the sale of two ConocoPhillips U.K. subsidiaries, right-of-use assets decreased approximately $0.2 billion in the third quarter of 2019. See Note 5–Asset Dispositions for additional information.
25
|
| Millions of Dollars | ||
|
| Carrying Amount | ||
|
| Operating Leases |
| Finance Leases |
Lease Liabilities |
|
|
|
|
Short-term debt* |
|
| $ | 86 |
Other accruals | $ | 249 |
|
|
Long-term debt* |
|
|
| 656 |
Other liabilities and deferred credits |
| 556 |
|
|
Total lease liabilities** | $ | 805 |
| 742 |
*Short-term debt and long-term debt include proportionately consolidated finance lease liabilities of $55 million and $595 million, respectively. **As a result of the sale of two ConocoPhillips U.K. subsidiaries, lease liabilities decreased approximately $0.2 billion in the third quarter of 2019. See Note 5–Asset Dispositions for additional information.
The following table summarizes our lease costs: | ||||
| Millions of Dollars | |||
| Three Months Ended | Nine Months Ended | ||
| September 30, 2019 | September 30, 2019 | ||
Lease Cost* |
|
|
|
|
Operating lease cost | $ | 99 |
| 265 |
Finance lease cost |
|
|
|
|
Amortization of right-of-use assets |
| 27 |
| 84 |
Interest on lease liabilities |
| 9 |
| 28 |
Short-term lease cost** |
| 26 |
| 57 |
Total lease cost*** | $ | 161 |
| 434 |
*The amounts presented in the table above have not been adjusted to reflect amounts recovered or reimbursed from oil and gas coventurers.
**Short-term leases are not recorded on our consolidated balance sheet. Our future short-term lease commitments amount to $72 million, of
which $41 million is related to leases whose terms have not yet commenced as of September 30, 2019.
***Variable lease cost and sublease income are immaterial for the periods presented and therefore are not included in the table above.
26
The following table summarizes the lease terms and discount rates: | |||
|
|
| September 30, 2019 |
Lease Term and Discount Rate |
|
|
|
Weighted-average term (years) |
|
|
|
Operating leases |
|
| 5.77 |
Finance leases |
|
| 8.91 |
|
|
|
|
Weighted-average discount rate (percent) |
|
|
|
Operating leases |
|
| 3.33 |
Finance leases |
|
| 5.61 |
|
|
|
|
|
|
|
|
The following table summarizes other lease information: | |||
|
|
|
|
|
|
| Millions of Dollars |
|
|
| Nine Months Ended |
|
|
| September 30, 2019 |
Other Information* |
|
|
|
Cash paid for amounts included in the measurement of lease liabilities |
|
|
|
Operating cash flows from operating leases |
| $ | 152 |
Operating cash flows from finance leases |
|
| 29 |
Financing cash flows from finance leases |
|
| 59 |
|
|
|
|
Right-of-use assets obtained in exchange for operating lease liabilities |
| $ | 300 |
Right-of-use assets obtained in exchange for finance lease liabilities |
|
| 26 |
*The amounts presented in the table above have not been adjusted to reflect amounts recovered or reimbursed from oil and gas coventurers. In addition, pursuant to other applicable accounting guidance, lease payments made in connection with preparing another asset for its intended use are reported in the "Cash Flows From Investing Activities" section of our consolidated statement of cash flows. | |||
|
|
|
|
|
The following table summarizes future lease payments for operating and finance leases at September 30, 2019: | ||||
|
|
|
|
|
|
| Millions of Dollars | ||
|
| Operating Leases |
| Finance Leases |
Maturity of Lease Liabilities |
|
|
|
|
2019 | $ | 77 |
| 31 |
2020 |
| 252 |
| 120 |
2021 |
| 190 |
| 103 |
2022 |
| 105 |
| 102 |
2023 |
| 69 |
| 88 |
Remaining years |
| 195 |
| 465 |
Total* |
| 888 |
| 909 |
Less: portion representing imputed interest |
| (83) |
| (167) |
Total lease liabilities | $ | 805 |
| 742 |
*Future lease payments for operating and finance leases commencing on or after January 1, 2019, also include payments related to non-lease components in accordance with our election to adopt the optional practical expedient not to separate lease components apart from non-lease components for accounting purposes. In addition, future payments related to operating and finance leases proportionately consolidated by the company have been included in the table on a proportionate basis consistent with our respective ownership interest in the underlying investee company or oil and gas venture. | ||||
27
|
|
|
|
|
At December 31, 2018, future undiscounted minimum rental payments due under noncancelable operating | ||||
leases pursuant to ASC Topic 840 were: |
|
|
|
|
|
|
|
|
|
|
|
|
| Millions of Dollars |
|
|
|
|
|
2019 |
|
| $ | 248 |
2020 |
|
|
| 425 |
2021 |
|
|
| 136 |
2022 |
|
|
| 319 |
2023 |
|
|
| 54 |
Remaining years |
|
|
| 212 |
Total |
|
|
| 1,394 |
Less: income from subleases |
|
|
| (7) |
Net minimum operating lease payments |
|
| $ | 1,387 |
At December 31, 2018, future minimum payments due under finance (capital) leases pursuant to | ||||
ASC Topic 840 were: | ||||
|
|
|
|
|
|
|
|
| Millions of Dollars |
|
|
|
|
|
2019 |
|
| $ | 118 |
2020 |
|
|
| 116 |
2021 |
|
|
| 100 |
2022 |
|
|
| 98 |
2023 |
|
|
| 87 |
Remaining years |
|
|
| 453 |
Total |
|
|
| 972 |
Less: portion representing imputed interest |
|
|
| (195) |
Capital lease obligations |
|
| $ | 777 |
Note 16—Accumulated Other Comprehensive Loss | |||||||
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss in the equity section of our consolidated balance sheet included: | |||||||
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||
|
| Defined Benefit Plans |
| Foreign Currency Translation |
| Accumulated Other Comprehensive Income (Loss) | |
|
|
|
|
|
|
|
|
December 31, 2018 | $ | (361) |
| (5,702) |
| (6,063) | |
Cumulative effect of adopting ASU No. 2018-02* |
| (40) |
| - |
| (40) | |
Other comprehensive income (loss) |
| (42) |
| 491 |
| 449 | |
September 30, 2019 | $ | (443) |
| (5,211) |
| (5,654) | |
*See Note 2—Changes in Accounting Principles for additional information. | |||||||
28
In the third quarter of 2019, we recognized $483 million of foreign currency translation adjustments related to the completion of our sale of two ConocoPhillips U.K. subsidiaries. For additional information related to this disposition, see Note 5—Asset Dispositions.
There were no items within accumulated other comprehensive loss related to noncontrolling interests.
The following table summarizes reclassifications out of accumulated other comprehensive loss and into comprehensive income: | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||
|
| Three Months Ended |
| Nine Months Ended | |||||
|
| September 30 |
| September 30 | |||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
|
Defined benefit plans | $ | 36 |
| 17 |
| 66 |
| 155 | |
and intonet
Note 17—Cash Flow Information |
|
|
|
| |
|
| Millions of Dollars | |||
|
| Nine Months Ended | |||
|
| September 30 | |||
|
|
| 2019 |
| 2018 |
Cash Payments |
|
|
|
| |
Interest | $ | 614 |
| 584 | |
Income taxes |
| 2,210 |
| 1,927 | |
|
|
|
|
|
|
Net Sales (Purchases) of Short-Term Investments |
|
|
|
| |
Short-term investments purchased | $ | (1,894) |
| (1,705) | |
Short-term investments sold |
| 1,229 |
| 2,701 | |
| $ | (665) |
| 996 | |
29
Dollars
Note 18—Employee Benefit Plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension and Postretirement Plans |
|
|
|
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||||||
| Pension Benefits |
| Other Benefits | |||||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | |||||
|
| U.S. |
| Int'l. |
| U.S. |
| Int'l. |
|
|
|
|
Components of Net Periodic Benefit Cost |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30 |
|
|
|
|
|
|
|
|
|
|
|
|
Service cost | $ | 20 |
| 19 |
| 20 |
| 20 |
| 1 |
| - |
Interest cost |
| 21 |
| 25 |
| 22 |
| 26 |
| 1 |
| 2 |
Expected return on plan assets |
| (18) |
| (34) |
| (22) |
| (38) |
| - |
| - |
Amortization of prior service credit |
| - |
| - |
| - |
| (1) |
| (7) |
| (9) |
Recognized net actuarial loss (gain) |
| 13 |
| 7 |
| 10 |
| 9 |
| (1) |
| - |
Settlements |
| 37 |
| - |
| 14 |
| - |
| - |
| - |
Curtailments |
| - |
| (1) |
| - |
| (1) |
| - |
| - |
Net periodic benefit cost | $ | 73 |
| 16 |
| 44 |
| 15 |
| (6) |
| (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30 |
|
|
|
|
|
|
|
|
|
|
|
|
Service cost | $ | 59 |
| 56 |
| 63 |
| 63 |
| 1 |
| 1 |
Interest cost |
| 63 |
| 77 |
| 76 |
| 80 |
| 6 |
| 6 |
Expected return on plan assets |
| (54) |
| (104) |
| (91) |
| (118) |
| - |
| - |
Amortization of prior service credit |
| - |
| (1) |
| - |
| (4) |
| (24) |
| (26) |
Recognized net actuarial loss (gain) |
| 39 |
| 23 |
| 41 |
| 27 |
| (2) |
| (1) |
Settlements |
| 54 |
| - |
| 161 |
| - |
| - |
| - |
Curtailments |
| - |
| (1) |
| - |
| (1) |
| - |
| - |
Net periodic benefit cost | $ | 161 |
| 50 |
| 250 |
| 47 |
| (19) |
| (20) |
Six Months Ended
During the three-month period ended September 30, 2019, lump-sum benefit payments exceeded the sum of service
The sale of two ConocoPhillips U.K. subsidiaries completed during the third quarter of 2019 led to a significant reduction of future services of active employees in certain international pension plans, resulting in a curtailment. In conjunction with the recognition of the curtailment, the fair market values of pension plan
30
assets were updated, the pension benefit obligation was remeasured, and the net pension asset decreased by $43 million, resulting in a corresponding decrease to other comprehensive income. This is primarily a result of a decrease in the discount rate from 2.90 percent at December 31, 2018 to 1.80 percent at September 30, 2019 offset by a decrease in the pension benefit obligation from curtailment.
Severance Accrual
The following table summarizes our severance accrual activity for the nine-month period ended September 30, 2019:
|
| Millions of Dollars | |
|
|
|
|
Balance at December 31, 2018 | $ | 48 | |
Accruals |
| (2) | |
Benefit payments |
| (22) | |
Foreign currency translation adjustments |
| (1) | |
Balance at September 30, 2019 | $ | 23 | |
Of the remaining balance at September 30, 2019, $6 million is classified as short term.
Note 19—Related Party Transactions | |||||||||
|
|
|
|
|
|
|
|
|
|
Our related parties primarily include equity method investments and certain trusts for the benefit of employees. | |||||||||
|
|
|
|
|
|
|
|
|
|
Significant transactions with our related parties were: | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||
|
| Three Months Ended |
| Nine Months Ended | |||||
| September 30 | September 30 | |||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
|
Operating revenues and other income | $ | 23 |
| 27 |
| 70 |
| 74 | |
Purchases |
| - |
| 25 |
| 38 |
| 74 | |
Operating expenses and selling, general and administrative |
|
|
|
|
|
|
|
| |
| expenses |
| 19 |
| 13 |
| 47 |
| 44 |
Net interest (income) expense* |
| (3) |
| (4) |
| (10) |
| (11) | |
*We paid interest to, or received interest from, various affiliates. See Note 6—Investments, Loans and Long-Term Receivables, for additional | |||||||||
information on loans to affiliated companies. | |||||||||
31
Note 20—19—Sales and Other Operating Revenues
| Millions of Dollars | |||||||
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | |||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
Revenue from contracts with customers | $ | 6,240 |
| 7,546 |
| 19,932 |
| 20,834 |
Revenue from contracts outside the scope of ASC Topic 606 |
|
|
|
|
|
|
|
|
Physical contracts meeting the definition of a derivative |
| 1,529 |
| 1,897 |
| 4,981 |
| 5,877 |
Financial derivative contracts |
| (13) |
| 6 |
| (54) |
| 40 |
Consolidated sales and other operating revenues | $ | 7,756 |
| 9,449 |
| 24,859 |
| 26,751 |
Revenues
|
| Millions of Dollars | |||||||
|
| Three Months Ended |
| Nine Months Ended | |||||
| September 30 | September 30 | |||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
Revenue from Outside the Scope of ASC Topic 606 |
|
|
|
|
|
|
|
| |
| by Segment |
|
|
|
|
|
|
|
|
Lower 48 | $ | 1,099 |
| 1,534 |
| 3,823 |
| 4,547 | |
Canada |
| 86 |
| 87 |
| 427 |
| 374 | |
Europe and North Africa |
| 344 |
| 276 |
| 731 |
| 956 | |
Physical contracts meeting the definition of a derivative | $ | 1,529 |
| 1,897 |
| 4,981 |
| 5,877 | |
|
| Millions of Dollars | |||||||
|
| Three Months Ended |
| Nine Months Ended | |||||
| September 30 | September 30 | |||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
Revenue from Outside the Scope of ASC Topic 606 |
|
|
|
|
|
|
|
| |
| by Product |
|
|
|
|
|
|
|
|
Crude oil | $ | 266 |
| 267 |
| 619 |
| 843 | |
Natural gas |
| 1,159 |
| 1,522 |
| 4,022 |
| 4,775 | |
Other |
| 104 |
| 108 |
| 340 |
| 259 | |
Physical contracts meeting the definition of a derivative | $ | 1,529 |
| 1,897 |
| 4,981 |
| 5,877 | |
32
Dollars
Three Months Ended
| Millions of Dollars | |
Contract Liabilities |
|
|
At December 31, 2018 | $ | 206 |
Contractual payments received |
| 73 |
Revenue recognized |
| (199) |
At September 30, 2019 | $ | 80 |
|
|
|
Amounts Recognized in the Consolidated Balance Sheet at September 30, 2019 |
|
|
Noncurrent liabilities | $ | 80 |
| $ | 80 |
33
We evaluate performance and allocate resources based on net income (loss) attributableto ConocoPhillips.
Analysis of Results by Operating Segment |
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||
| Three Months Ended |
| Nine Months Ended | |||||
| September 30 | September 30 | ||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 |
Sales and Other Operating Revenues |
|
|
|
|
|
|
|
|
Alaska | $ | 1,296 |
| 1,493 |
| 4,129 |
| 4,281 |
Lower 48 |
| 3,728 |
| 4,543 |
| 11,690 |
| 12,347 |
Intersegment eliminations |
| (10) |
| (14) |
| (33) |
| (18) |
Lower 48 |
| 3,718 |
| 4,529 |
| 11,657 |
| 12,329 |
Canada |
| 633 |
| 735 |
| 2,173 |
| 2,436 |
Intersegment eliminations |
| (273) |
| (308) |
| (858) |
| (853) |
Canada |
| 360 |
| 427 |
| 1,315 |
| 1,583 |
Europe and North Africa |
| 1,225 |
| 1,574 |
| 4,084 |
| 4,826 |
Asia Pacific and Middle East |
| 1,085 |
| 1,348 |
| 3,458 |
| 3,570 |
Corporate and Other |
| 72 |
| 78 |
| 216 |
| 162 |
Consolidated sales and other operating revenues | $ | 7,756 |
| 9,449 |
| 24,859 |
| 26,751 |
|
|
|
|
|
|
|
|
|
Sales and Other Operating Revenues by Geographic Location | ||||||||
United States | $ | 5,085 |
| 6,025 |
| 15,996 |
| 16,617 |
Australia |
| 412 |
| 515 |
| 1,282 |
| 1,258 |
Canada |
| 360 |
| 427 |
| 1,315 |
| 1,583 |
China |
| 191 |
| 262 |
| 593 |
| 616 |
Indonesia |
| 223 |
| 234 |
| 654 |
| 662 |
Libya |
| 288 |
| 264 |
| 809 |
| 802 |
Malaysia |
| 258 |
| 339 |
| 928 |
| 1,039 |
Norway |
| 632 |
| 734 |
| 1,781 |
| 2,112 |
United Kingdom |
| 305 |
| 574 |
| 1,494 |
| 1,911 |
Other foreign countries |
| 2 |
| 75 |
| 7 |
| 151 |
Worldwide consolidated | $ | 7,756 |
| 9,449 |
| 24,859 |
| 26,751 |
|
|
|
|
|
|
|
|
|
Sales and Other Operating Revenues by Product |
|
|
|
|
|
|
|
|
Crude Oil | $ | 4,612 |
| 5,277 |
| 14,006 |
| 14,503 |
Natural gas |
| 1,799 |
| 2,503 |
| 6,717 |
| 7,593 |
Natural gas liquids |
| 156 |
| 351 |
| 607 |
| 847 |
Other* |
| 1,189 |
| 1,318 |
| 3,529 |
| 3,808 |
Consolidated sales and other operating revenues by product | $ | 7,756 |
| 9,449 |
| 24,859 |
| 26,751 |
*Includes LNG and bitumen. | ||||||||
34
TableEffective in the third quarter of Contents
2020, we will restructureour segments to align with changes to our internal
| Millions of Dollars | |||||||
| Three Months Ended |
| Nine Months Ended | |||||
|
| September 30 |
| September 30 | ||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 |
Net Income Attributable to ConocoPhillips |
|
|
|
|
|
|
|
|
Alaska | $ | 306 |
| 427 |
| 1,152 |
| 1,369 |
Lower 48 |
| 26 |
| 513 |
| 425 |
| 1,231 |
Canada |
| 51 |
| 34 |
| 273 |
| 2 |
Europe and North Africa |
| 2,001 |
| 241 |
| 2,615 |
| 776 |
Asia Pacific and Middle East |
| 613 |
| 577 |
| 1,655 |
| 1,504 |
Other International |
| 73 |
| 316 |
| 285 |
| 267 |
Corporate and Other |
| (14) |
| (247) |
| 64 |
| (760) |
Consolidated net income attributable to ConocoPhillips | $ | 3,056 |
| 1,861 |
| 6,469 |
| 4,389 |
| Millions of Dollars | |||
| September 30 |
| December 31 | |
2019 | 2018 | |||
Total Assets |
|
|
|
|
Alaska | $ | 15,513 |
| 14,648 |
Lower 48 |
| 14,601 |
| 14,888 |
Canada |
| 6,196 |
| 5,748 |
Europe and North Africa |
| 7,941 |
| 9,883 |
Asia Pacific and Middle East |
| 15,091 |
| 16,151 |
Other International |
| 89 |
| 89 |
Corporate and Other |
| 10,909 |
| 8,573 |
Consolidated total assets | $ | 70,340 |
| 69,980 |
Note 22—Income Taxes
Our effective tax rates organization.The Middle East business will move from theAsia Pacific and Middle East segment to the
During the three- and nine-month periods ended September 30, 2019, we recognized a U.S. tax benefit of $28 million and $262 million, respectively, related to the recognition of a U.S. capital loss benefit on our U.K. entity disposition.
During the third quarter of 2019, we received final partner approval
For additional information on asset dispositions, see Note 5—Asset Dispositions.
tax
35
Note 23—New Accounting Standards
In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASU No. 2016-13), which sets forth the current expected credit loss model, a new forward-looking impairment model for certain financial instruments based on expected losses rather than incurred losses. The ASU is effective for interim and annual periods beginning after December 15, 2019. Entities are required to adopt ASU No. 2016-13 using a modified retrospective approach, subject to certain limited exceptions. The impact of adopting this ASU is not expected to be material to our financial statements.
In December 2018, ConocoPhillips Canada Funding Company I’s guaranteed, publicly held debt securities were assumed by Burlington Resources LLC. The assumption did not significantly change the nature of the outstanding debt or the terms of the parental guarantees, which remain full and unconditional, as well as joint and several. The assumption did not impact our consolidated financial position, results of operations or cash flows. Financial information for ConocoPhillips Canada Funding Company I is presented in the “All Other Subsidiaries” column of our condensed consolidating financial information. The prior year comparative periods have been restated to reflect the current period condensed consolidating financial information presentation.
In April
36
|
|
| Millions of Dollars | ||||||||||
|
|
| Three Months Ended September 30, 2019 | ||||||||||
Income Statement |
| ConocoPhillips |
| ConocoPhillips Company |
| Burlington Resources LLC |
| All Other Subsidiaries |
| Consolidating Adjustments |
| Total Consolidated | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Other Income |
|
|
|
|
|
|
|
|
|
|
|
| |
Sales and other operating revenues | $ | - |
| 3,493 |
| - |
| 4,263 |
| - |
| 7,756 | |
Equity in earnings of affiliates |
| 3,114 |
| 728 |
| 461 |
| 288 |
| (4,301) |
| 290 | |
Gain (loss) on dispositions |
| - |
| 2,695 |
| - |
| (910) |
| - |
| 1,785 | |
Other income |
| - |
| 136 |
| 2 |
| 124 |
| - |
| 262 | |
Intercompany revenues |
| - |
| 34 |
| 10 |
| 1,323 |
| (1,367) |
| - | |
Total Revenues and Other Income |
| 3,114 |
| 7,086 |
| 473 |
| 5,088 |
| (5,668) |
| 10,093 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
| |
Purchased commodities |
| - |
| 3,078 |
| - |
| 884 |
| (1,252) |
| 2,710 | |
Production and operating expenses |
| - |
| 290 |
| - |
| 1,091 |
| (50) |
| 1,331 | |
Selling, general and administrative expenses |
| 1 |
| 60 |
| - |
| 26 |
| - |
| 87 | |
Exploration expenses |
| - |
| 295 |
| - |
| 65 |
| - |
| 360 | |
Depreciation, depletion and amortization |
| - |
| 159 |
| - |
| 1,407 |
| - |
| 1,566 | |
Impairments |
| - |
| 12 |
| - |
| 12 |
| - |
| 24 | |
Taxes other than income taxes |
| - |
| 28 |
| - |
| 209 |
| - |
| 237 | |
Accretion on discounted liabilities |
| - |
| 4 |
| - |
| 82 |
| - |
| 86 | |
Interest and debt expense |
| 72 |
| 109 |
| 34 |
| 34 |
| (65) |
| 184 | |
Foreign currency transaction (gains) losses |
| - |
| (6) |
| - |
| (15) |
| - |
| (21) | |
Other expenses |
| - |
| 35 |
| - |
| 1 |
| - |
| 36 | |
Total Costs and Expenses |
| 73 |
| 4,064 |
| 34 |
| 3,796 |
| (1,367) |
| 6,600 | |
Income before income taxes |
| 3,041 |
| 3,022 |
| 439 |
| 1,292 |
| (4,301) |
| 3,493 | |
Income tax provision (benefit) |
| (15) |
| (92) |
| (5) |
| 534 |
| - |
| 422 | |
Net income |
| 3,056 |
| 3,114 |
| 444 |
| 758 |
| (4,301) |
| 3,071 | |
Less: net income attributable to noncontrolling interests |
| - |
| - |
| - |
| (15) |
| - |
| (15) | |
Net Income Attributable to ConocoPhillips | $ | 3,056 |
| 3,114 |
| 444 |
| 743 |
| (4,301) |
| 3,056 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income Attributable to ConocoPhillips | $ | 3,229 |
| 3,287 |
| 384 |
| 939 |
| (4,610) |
| 3,229 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement |
| Three Months Ended September 30, 2018 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Other Income |
|
|
|
|
|
|
|
|
|
|
|
| |
Sales and other operating revenues | $ | - |
| 4,330 |
| - |
| 5,119 |
| - |
| 9,449 | |
Equity in earnings of affiliates |
| 1,903 |
| 2,166 |
| 481 |
| 294 |
| (4,550) |
| 294 | |
Gain on dispositions |
| - |
| 75 |
| - |
| 38 |
| - |
| 113 | |
Other income (loss) |
| - |
| (61) |
| - |
| 370 |
| - |
| 309 | |
Intercompany revenues |
| 9 |
| 34 |
| 15 |
| 1,597 |
| (1,655) |
| - | |
Total Revenues and Other Income |
| 1,912 |
| 6,544 |
| 496 |
| 7,418 |
| (6,205) |
| 10,165 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
| |
Purchased commodities |
| - |
| 3,880 |
| - |
| 1,197 |
| (1,547) |
| 3,530 | |
Production and operating expenses |
| - |
| 298 |
| - |
| 1,084 |
| (15) |
| 1,367 | |
Selling, general and administrative expenses |
| 2 |
| 99 |
| - |
| 18 |
| - |
| 119 | |
Exploration expenses |
| - |
| 41 |
| - |
| 62 |
| - |
| 103 | |
Depreciation, depletion and amortization |
| - |
| 152 |
| - |
| 1,342 |
| - |
| 1,494 | |
Impairments |
| - |
| 1 |
| - |
| 43 |
| - |
| 44 | |
Taxes other than income taxes |
| - |
| 33 |
| - |
| 279 |
| - |
| 312 | |
Accretion on discounted liabilities |
| - |
| 4 |
| - |
| 85 |
| - |
| 89 | |
Interest and debt expense |
| 72 |
| 156 |
| 10 |
| 41 |
| (93) |
| 186 | |
Foreign currency transaction (gains) losses |
| (12) |
| 3 |
| (42) |
| 56 |
| - |
| 5 | |
Other expenses |
| - |
| 6 |
| - |
| 4 |
| - |
| 10 | |
Total Costs and Expenses |
| 62 |
| 4,673 |
| (32) |
| 4,211 |
| (1,655) |
| 7,259 | |
Income before income taxes |
| 1,850 |
| 1,871 |
| 528 |
| 3,207 |
| (4,550) |
| 2,906 | |
Income tax provision (benefit) |
| (11) |
| (32) |
| (6) |
| 1,082 |
| - |
| 1,033 | |
Net income |
| 1,861 |
| 1,903 |
| 534 |
| 2,125 |
| (4,550) |
| 1,873 | |
Less: net income attributable to noncontrolling interests |
| - |
| - |
| - |
| (12) |
| - |
| (12) | |
Net Income Attributable to ConocoPhillips | $ | 1,861 |
| 1,903 |
| 534 |
| 2,113 |
| (4,550) |
| 1,861 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income Attributable to ConocoPhillips | $ | 2,056 |
| 2,098 |
| 612 |
| 2,277 |
| (4,987) |
| 2,056 | |
See Notes to Consolidated Financial Statements. | |||||||||||||
37
|
|
|
| Millions of Dollars | |||||||||||
|
|
|
| Nine Months Ended September 30, 2019 | |||||||||||
Income Statement |
|
| ConocoPhillips |
| ConocoPhillips Company |
| Burlington Resources LLC |
| All Other Subsidiaries |
| Consolidating Adjustments |
| Total Consolidated | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sales and other operating revenues |
|
| $ | - |
| 10,961 |
| - |
| 13,898 |
| - |
| 24,859 | |
Equity in earnings of affiliates |
|
|
| 6,641 |
| 4,438 |
| 1,467 |
| 647 |
| (12,542) |
| 651 | |
Gain (loss) on dispositions |
|
|
| - |
| 2,700 |
| - |
| (816) |
| - |
| 1,884 | |
Other income |
|
|
| 1 |
| 688 |
| 3 |
| 444 |
| - |
| 1,136 | |
Intercompany revenues |
|
|
| - |
| 83 |
| 33 |
| 4,266 |
| (4,382) |
| - | |
Total Revenues and Other Income |
|
|
| 6,642 |
| 18,870 |
| 1,503 |
| 18,439 |
| (16,924) |
| 28,530 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Purchased commodities |
|
|
| - |
| 9,699 |
| - |
| 3,134 |
| (3,774) |
| 9,059 | |
Production and operating expenses |
|
|
| 1 |
| 1,127 |
| 1 |
| 3,295 |
| (404) |
| 4,020 | |
Selling, general and administrative expenses |
|
|
| 7 |
| 272 |
| - |
| 95 |
| (5) |
| 369 | |
Exploration expenses |
|
|
| - |
| 389 |
| - |
| 203 |
| - |
| 592 | |
Depreciation, depletion and amortization |
|
|
| - |
| 443 |
| - |
| 4,159 |
| - |
| 4,602 | |
Impairments |
|
|
| - |
| 12 |
| - |
| 14 |
| - |
| 26 | |
Taxes other than income taxes |
|
|
| - |
| 107 |
| - |
| 599 |
| - |
| 706 | |
Accretion on discounted liabilities |
|
|
| - |
| 12 |
| - |
| 247 |
| - |
| 259 | |
Interest and debt expense |
|
|
| 211 |
| 401 |
| 100 |
| 69 |
| (199) |
| 582 | |
Foreign currency transaction (gains) losses |
|
|
| - |
| 23 |
| - |
| (4) |
| - |
| 19 | |
Other expenses |
|
|
| - |
| 60 |
| - |
| (2) |
| - |
| 58 | |
Total Costs and Expenses |
|
|
| 219 |
| 12,545 |
| 101 |
| 11,809 |
| (4,382) |
| 20,292 | |
Income before income taxes |
|
|
| 6,423 |
| 6,325 |
| 1,402 |
| 6,630 |
| (12,542) |
| 8,238 | |
Income tax provision (benefit) |
|
|
| (46) |
| (316) |
| (14) |
| 2,100 |
| - |
| 1,724 | |
Net income |
|
|
| 6,469 |
| 6,641 |
| 1,416 |
| 4,530 |
| (12,542) |
| 6,514 | |
Less: net income attributable to noncontrolling interests |
|
|
| - |
| - |
| - |
| (45) |
| - |
| (45) | |
Net Income Attributable to ConocoPhillips |
|
| $ | 6,469 |
| 6,641 |
| 1,416 |
| 4,485 |
| (12,542) |
| 6,469 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Comprehensive Income Attributable to ConocoPhillips |
|
| $ | 6,918 |
| 7,090 |
| 1,588 |
| 4,937 |
| (13,615) |
| 6,918 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement |
|
| Nine Months Ended September 30, 2018 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sales and other operating revenues |
|
| $ | - |
| 11,774 |
| - |
| 14,977 |
| - |
| 26,751 | |
Equity in earnings of affiliates |
|
|
| 4,562 |
| 5,398 |
| 1,360 |
| 766 |
| (11,319) |
| 767 | |
Gain on dispositions |
|
|
| - |
| 78 |
| - |
| 97 |
| - |
| 175 | |
Other income |
|
|
| - |
| 230 |
| - |
| 443 |
| - |
| 673 | |
Intercompany revenues |
|
|
| 28 |
| 124 |
| 28 |
| 4,188 |
| (4,368) |
| - | |
Total Revenues and Other Income |
|
|
| 4,590 |
| 17,604 |
| 1,388 |
| 20,471 |
| (15,687) |
| 28,366 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Purchased commodities |
|
|
| - |
| 10,571 |
| - |
| 3,758 |
| (4,021) |
| 10,308 | |
Production and operating expenses |
|
|
| - |
| 723 |
| 4 |
| 3,182 |
| (58) |
| 3,851 | |
Selling, general and administrative expenses |
|
|
| 7 |
| 254 |
| - |
| 80 |
| (5) |
| 336 | |
Exploration expenses |
|
|
| - |
| 132 |
| - |
| 135 |
| - |
| 267 | |
Depreciation, depletion and amortization |
|
|
| - |
| 427 |
| - |
| 3,917 |
| - |
| 4,344 | |
Impairments |
|
|
| - |
| (9) |
| - |
| 30 |
| - |
| 21 | |
Taxes other than income taxes |
|
|
| - |
| 111 |
| - |
| 657 |
| - |
| 768 | |
Accretion on discounted liabilities |
|
|
| - |
| 13 |
| - |
| 253 |
| - |
| 266 | |
Interest and debt expense |
|
|
| 219 |
| 456 |
| 35 |
| 121 |
| (284) |
| 547 | |
Foreign currency transaction (gains) losses |
|
|
| 22 |
| (6) |
| 38 |
| (47) |
| - |
| 7 | |
Other expenses |
|
|
| - |
| 348 |
| 6 |
| (4) |
| - |
| 350 | |
Total Costs and Expenses |
|
|
| 248 |
| 13,020 |
| 83 |
| 12,082 |
| (4,368) |
| 21,065 | |
Income before income taxes |
|
|
| 4,342 |
| 4,584 |
| 1,305 |
| 8,389 |
| (11,319) |
| 7,301 | |
Income tax provision (benefit) |
|
|
| (47) |
| 22 |
| (25) |
| 2,924 |
| - |
| 2,874 | |
Net income |
|
|
| 4,389 |
| 4,562 |
| 1,330 |
| 5,465 |
| (11,319) |
| 4,427 | |
Less: net income attributable to noncontrolling interests |
|
|
| - |
| - |
| - |
| (38) |
| - |
| (38) | |
Net Income Attributable to ConocoPhillips |
|
| $ | 4,389 |
| 4,562 |
| 1,330 |
| 5,427 |
| (11,319) |
| 4,389 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Comprehensive Income Attributable to ConocoPhillips |
|
| $ | 4,407 |
| 4,580 |
| 1,149 |
| 5,319 |
| (11,048) |
| 4,407 | |
See Notes to Consolidated Financial Statements. | |||||||||||||||
38
|
| Millions of Dollars | |||||||||||
|
| September 30, 2019 | |||||||||||
Balance Sheet | ConocoPhillips |
| ConocoPhillips Company |
| Burlington Resources LLC |
| All Other Subsidiaries |
| Consolidating Adjustments |
| Total Consolidated | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
| |
Cash and cash equivalents | $ | - |
| 3,450 |
| - |
| 3,743 |
| - |
| 7,193 | |
Short-term investments |
| - |
| 400 |
| - |
| 508 |
| - |
| 908 | |
Accounts and notes receivable |
| 5 |
| 1,905 |
| 2 |
| 4,518 |
| (2,814) |
| 3,616 | |
Investment in Cenovus Energy |
| - |
| 1,951 |
| - |
| - |
| - |
| 1,951 | |
Inventories |
| - |
| 141 |
| - |
| 814 |
| - |
| 955 | |
Prepaid expenses and other current assets |
| - |
| 188 |
| - |
| 406 |
| - |
| 594 | |
Total Current Assets |
| 5 |
| 8,035 |
| 2 |
| 9,989 |
| (2,814) |
| 15,217 | |
Investments, loans and long-term receivables* |
| 35,374 |
| 50,862 |
| 16,169 |
| 16,666 |
| (109,936) |
| 9,135 | |
Net properties, plants and equipment |
| - |
| 3,822 |
| - |
| 39,992 |
| - |
| 43,814 | |
Other assets |
| 4 |
| 933 |
| 227 |
| 2,003 |
| (993) |
| 2,174 | |
Total Assets | $ | 35,383 |
| 63,652 |
| 16,398 |
| 68,650 |
| (113,743) |
| 70,340 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| |
Accounts payable | $ | - |
| 2,869 |
| - |
| 3,116 |
| (2,814) |
| 3,171 | |
Short-term debt |
| (3) |
| 3 |
| 14 |
| 107 |
| - |
| 121 | |
Accrued income and other taxes |
| - |
| 56 |
| - |
| 1,021 |
| - |
| 1,077 | |
Employee benefit obligations |
| - |
| 415 |
| - |
| 128 |
| - |
| 543 | |
Other accruals |
| 56 |
| 348 |
| 38 |
| 588 |
| - |
| 1,030 | |
Total Current Liabilities |
| 53 |
| 3,691 |
| 52 |
| 4,960 |
| (2,814) |
| 5,942 | |
Long-term debt |
| 3,793 |
| 6,671 |
| 2,132 |
| 2,203 |
| - |
| 14,799 | |
Asset retirement obligations and accrued environmental costs |
| - |
| 410 |
| - |
| 5,677 |
| - |
| 6,087 | |
Deferred income taxes |
| - |
| - |
| - |
| 5,686 |
| (993) |
| 4,693 | |
Employee benefit obligations |
| - |
| 1,373 |
| - |
| 413 |
| - |
| 1,786 | |
Other liabilities and deferred credits* |
| 2,949 |
| 9,598 |
| 989 |
| 9,169 |
| (20,911) |
| 1,794 | |
Total Liabilities |
| 6,795 |
| 21,743 |
| 3,173 |
| 28,108 |
| (24,718) |
| 35,101 | |
Retained earnings |
| 32,926 |
| 23,494 |
| 2,467 |
| 11,876 |
| (31,279) |
| 39,484 | |
Other common stockholders’ equity |
| (4,338) |
| 18,415 |
| 10,758 |
| 28,573 |
| (57,746) |
| (4,338) | |
Noncontrolling interests |
| - |
| - |
| - |
| 93 |
| - |
| 93 | |
Total Liabilities and Stockholders’ Equity | $ | 35,383 |
| 63,652 |
| 16,398 |
| 68,650 |
| (113,743) |
| 70,340 | |
*Includes intercompany loans. | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet | December 31, 2018 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
| |
Cash and cash equivalents | $ | - |
| 1,428 |
| - |
| 4,487 |
| - |
| 5,915 | |
Short-term investments |
| - |
| - |
| - |
| 248 |
| - |
| 248 | |
Accounts and notes receivable |
| 28 |
| 5,646 |
| 78 |
| 6,707 |
| (8,392) |
| 4,067 | |
Investment in Cenovus Energy |
| - |
| 1,462 |
| - |
| - |
| - |
| 1,462 | |
Inventories |
| - |
| 184 |
| - |
| 823 |
| - |
| 1,007 | |
Prepaid expenses and other current assets |
| 1 |
| 267 |
| - |
| 307 |
| - |
| 575 | |
Total Current Assets |
| 29 |
| 8,987 |
| 78 |
| 12,572 |
| (8,392) |
| 13,274 | |
Investments, loans and long-term receivables* |
| 29,942 |
| 47,062 |
| 15,199 |
| 16,926 |
| (99,465) |
| 9,664 | |
Net properties, plants and equipment |
| - |
| 4,367 |
| - |
| 41,796 |
| (465) |
| 45,698 | |
Other assets |
| 4 |
| 642 |
| 227 |
| 1,269 |
| (798) |
| 1,344 | |
Total Assets | $ | 29,975 |
| 61,058 |
| 15,504 |
| 72,563 |
| (109,120) |
| 69,980 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
| |
Accounts payable | $ | - |
| 5,098 |
| 76 |
| 7,113 |
| (8,392) |
| 3,895 | |
Short-term debt |
| (3) |
| 12 |
| 13 |
| 99 |
| (9) |
| 112 | |
Accrued income and other taxes |
| - |
| 85 |
| - |
| 1,235 |
| - |
| 1,320 | |
Employee benefit obligations |
| - |
| 638 |
| - |
| 171 |
| - |
| 809 | |
Other accruals |
| 85 |
| 587 |
| 35 |
| 552 |
| - |
| 1,259 | |
Total Current Liabilities |
| 82 |
| 6,420 |
| 124 |
| 9,170 |
| (8,401) |
| 7,395 | |
Long-term debt |
| 3,791 |
| 7,151 |
| 2,143 |
| 2,249 |
| (478) |
| 14,856 | |
Asset retirement obligations and accrued environmental costs |
| - |
| 415 |
| - |
| 7,273 |
| - |
| 7,688 | |
Deferred income taxes |
| - |
| - |
| - |
| 5,819 |
| (798) |
| 5,021 | |
Employee benefit obligations |
| - |
| 1,340 |
| - |
| 424 |
| - |
| 1,764 | |
Other liabilities and deferred credits* |
| 725 |
| 9,277 |
| 839 |
| 8,126 |
| (17,775) |
| 1,192 | |
Total Liabilities |
| 4,598 |
| 24,603 |
| 3,106 |
| 33,061 |
| (27,452) |
| 37,916 | |
Retained earnings |
| 27,512 |
| 18,511 |
| 1,113 |
| 9,764 |
| (22,890) |
| 34,010 | |
Other common stockholders’ equity |
| (2,135) |
| 17,944 |
| 11,285 |
| 29,613 |
| (58,778) |
| (2,071) | |
Noncontrolling interests |
| - |
| - |
| - |
| 125 |
| - |
| 125 | |
Total Liabilities and Stockholders’ Equity | $ | 29,975 |
| 61,058 |
| 15,504 |
| 72,563 |
| (109,120) |
| 69,980 | |
*Includes intercompany loans. See Notes to Consolidated Financial Statements. |
|
| |||||||||||
39
|
| Millions of Dollars | |||||||||||
| Nine Months Ended September 30, 2019 | ||||||||||||
Statement of Cash Flows |
| ConocoPhillips |
| ConocoPhillips Company |
| Burlington Resources LLC |
| All Other Subsidiaries |
| Consolidating Adjustments |
| Total Consolidated | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
| |
Net Cash Provided by (Used in) Operating Activities | $ | 1,486 |
| 6,408 |
| (56) |
| 6,662 |
| (6,378) |
| 8,122 | |
| |||||||||||||
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
| |
Capital expenditures and investments |
| - |
| (2,308) |
| - |
| (4,329) |
| 1,596 |
| (5,041) | |
Working capital changes associated with investing activities |
| - |
| 76 |
| - |
| (59) |
| - |
| 17 | |
Proceeds from asset dispositions |
| - |
| 2,732 |
| 763 |
| 1,026 |
| (1,601) |
| 2,920 | |
Sales (purchases) of short-term investments |
| - |
| (400) |
| - |
| (265) |
| - |
| (665) | |
Long-term advances/loans—related parties |
| - |
| (810) |
| - |
| - |
| 810 |
| - | |
Collection of advances/loans—related parties |
| - |
| 141 |
| - |
| 147 |
| (161) |
| 127 | |
Intercompany cash management |
| 2,224 |
| (1,970) |
| 56 |
| (310) |
| - |
| - | |
Other |
| - |
| (149) |
| - |
| 3 |
| - |
| (146) | |
Net Cash Provided by (Used in) Investing Activities |
| 2,224 |
| (2,688) |
| 819 |
| (3,787) |
| 644 |
| (2,788) | |
| |||||||||||||
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
| |
Issuance of debt |
| - |
| - |
| - |
| 810 |
| (810) |
| - | |
Repayment of debt |
| - |
| (21) |
| - |
| (199) |
| 161 |
| (59) | |
Issuance of company common stock |
| 75 |
| - |
| - |
| - |
| (114) |
| (39) | |
Repurchase of company common stock |
| (2,751) |
| - |
| - |
| - |
| - |
| (2,751) | |
Dividends paid |
| (1,037) |
| (1,660) |
| - |
| (4,832) |
| 6,492 |
| (1,037) | |
Other |
| 3 |
| - |
| (763) |
| 682 |
| 5 |
| (73) | |
Net Cash Used in Financing Activities |
| (3,710) |
| (1,681) |
| (763) |
| (3,539) |
| 5,734 |
| (3,959) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash |
| - |
| (12) |
| - |
| (56) |
| - |
| (68) | |
| |||||||||||||
Net Change in Cash, Cash Equivalents and Restricted Cash |
| - |
| 2,027 |
| - |
| (720) |
| - |
| 1,307 | |
Cash, cash equivalents and restricted cash at beginning of period* |
| - |
| 1,428 |
| - |
| 4,723 |
| - |
| 6,151 | |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | - |
| 3,455 |
| - |
| 4,003 |
| - |
| 7,458 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Cash Flows | Nine Months Ended September 30, 2018* | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
| |
Net Cash Provided by (Used in) Operating Activities | $ | (169) |
| 791 |
| 818 |
| 8,762 |
| (1,051) |
| 9,151 | |
| |||||||||||||
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
| |
Capital expenditures and investments |
| - |
| (771) |
| (12) |
| (4,369) |
| 19 |
| (5,133) | |
Working capital changes associated with investing activities |
| - |
| (77) |
| - |
| 20 |
| - |
| (57) | |
Proceeds from asset dispositions |
| 2,500 |
| 379 |
| 1,926 |
| 199 |
| (4,610) |
| 394 | |
Sales of short-term investments |
| - |
| - |
| - |
| 996 |
| - |
| 996 | |
Long-term advances/loans—related parties |
| - |
| (36) |
| (117) |
| (10) |
| 163 |
| - | |
Collection of advances/loans—related parties |
| - |
| 3,432 |
| - |
| 129 |
| (3,442) |
| 119 | |
Intercompany cash management |
| 514 |
| 3,426 |
| (2,564) |
| (1,376) |
| - |
| - | |
Other |
| - |
| - |
| - |
| 16 |
| - |
| 16 | |
Net Cash Provided by (Used in) Investing Activities |
| 3,014 |
| 6,353 |
| (767) |
| (4,395) |
| (7,870) |
| (3,665) | |
| |||||||||||||
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
| |
Issuance of debt |
| - |
| 10 |
| - |
| 153 |
| (163) |
| - | |
Repayment of debt |
| - |
| (4,865) |
| (53) |
| (3,494) |
| 3,442 |
| (4,970) | |
Issuance of company common stock |
| 234 |
| - |
| - |
| - |
| (113) |
| 121 | |
Repurchase of company common stock |
| (2,073) |
| - |
| - |
| - |
| - |
| (2,073) | |
Dividends paid |
| (1,009) |
| - |
| - |
| (1,217) |
| 1,217 |
| (1,009) | |
Other |
| 3 |
| (2,511) |
| - |
| (2,141) |
| 4,538 |
| (111) | |
Net Cash Used in Financing Activities |
| (2,845) |
| (7,366) |
| (53) |
| (6,699) |
| 8,921 |
| (8,042) | |
| |||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
| - |
| 4 |
| - |
| (44) |
| - |
| (40) | |
| |||||||||||||
Net Change in Cash and Cash Equivalents |
| - |
| (218) |
| (2) |
| (2,376) |
| - |
| (2,596) | |
Cash and cash equivalents at beginning of period |
| - |
| 234 |
| 3 |
| 6,299 |
| - |
| 6,536 | |
Cash and Cash Equivalents at End of Period | $ | - |
| 16 |
| 1 |
| 3,923 |
| - |
| 3,940 | |
*Revised to reclassify certain intercompany distributions from Operating Activities to 'Proceeds from asset dispositions' within Investing Activities based on the nature of the distributions. There was no impact to Total Consolidated results. | |||||||||||||
See Notes to Consolidated Financial Statements. | |||||||||||||
40
59. “estimate, “could,“could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek, “objective,“objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,63.1716 countries.Our diverse,North Africa, Asia and Australia;Asia; LNGdevelopments; oil sands assets in Canada;and an inventory of Headquartered in Houston, Texas, at SeptemberAt June 30, 2019,2020, we employed approximately 10,400$70$63 billion.Global
Ourcore value propositionprinciples, namely, to focus on financial returns, maintain financial strength, growa
costreduction
41
In the third quarter of 2019, we continued to deliver on our priorities. We achieved production growth of 8 percent on a total BOE basis compared with the third quarter of 2018, with higher value oil volumes growing 12 percent. Cash provided by operating activities of $2.3 billion exceeded capital expenditures and investments of $1.7 billion. After distributing $0.3 billion of dividends to shareholders and repurchasing $0.7 billion of our common stock, we ended the quarter with cash, cash equivalents and restricted cash totaling $7.5 billion and $0.9 billion of short-term investments. In July, we announced an increase to our expected full-year 2019 share repurchases to $3.5 billion, an increase of $0.5 billion from previously stated plans. In October, we announced an increase to our quarterly dividend of 38 percent to $0.42 per share and announced planned 2020 share buybacks of $3 billion.
In the second quarter of 2019, we completed2020 was slightlyhigher
In April 2019, we entered into an agreement to sell two ConocoPhillips U.K. subsidiaries to Chrysaor E&P Limited for $2.675 billion plus interest and customary adjustments, with an effective date of January 1, 2018. On September 30, 2019, we completed the sale for proceeds of $2.2 billion. In the nine-monthsame period of 2019, we recorded a $1.8 billion before-tax and $2.1 billion after-tax gain associated with this transaction. Together the subsidiaries sold indirectly held our exploration and production assets in the U.K. year ago.
In October 2019, we announced an agreement to sell the subsidiaries that hold our Australia-West assets and operations to Santos for $1.39 billion, plus customary adjustments, with an effective date of January 1, 2019. In addition, we will receive a payment of $75 million upon final investment decisionhalf of the Barossa development project. These subsidiaries hold our 37.5 percent interest in the Barossa Projectyear we recognized a $1.1billion before and Caldita Field, our 56.9 percent interest in the Darwin LNG Facility and Bayu-Undan Field, our 40 percent interest in the Greater Poseidon Fields, and our 50 percent interest in the Athena Field. This transaction is expected to be completed in the first quarter of 2020, subject to regulatory approvals and other specific conditions precedent. In the first nine months of 2019, production associated with the Australia-West assets to be sold was 49 MBOED. Year-end 2018 reserves associated with these assets were 38 MMBOE. We will retain our 37.5 percent interest in the Australia Pacific LNG project and operatorship of that project’s LNG facility. Results of operations for the subsidiaries to be sold are reported within our Asia Pacific and Middle East segment.
For additional information after-tax unrealized losson our dispositions, see Note 5—Asset Dispositions 208 million
42
Business Environment
Dated Brent crude oil prices have ranged from a low of $53 per barrel to a high of $75 per barrel in the first nine months of 2019. The energy industry has periodically experienced volatilityimpairments due to fluctuating supply-and-demand conditions. low domestic naturalgas
|
COVID-19.
weak domestic and LNG feedstockdemand.
43
in the WTI benchmark price and a widening WCS differential to WTI at Hardisty, partly offset by lower diluent costs. The WCS differential to WTI at Hardisty decreased in the third quarter of 2019,$60 per barrel compared towith $37.20 per barrelin the second quarter of 2019, due2019.The decrease in the second
the lower priced local market.In addition, we incurred unutilized transportationcosts which
2019.
Cash provided by operating activities was $2.3 billion and exceeded capital expenditures and investments of $1.7 billion.
Repurchased $0.75 billion of shares and paid $0.34 billion in dividends.
Third-quarter production excluding Libya of 1,322 MBOED; year-over-year underlying production grew 7 percent overall and 6 percent on a debt-adjusted share basis.
Increased production from the Lower 48 Big 3 unconventional plays—Eagle Ford, Bakken and Delaware—by 21 percent year-over-year.
Executed turnarounds in Alaska, Malaysia and Norway.
Completed
Announced
Announced a 38 percent increaselimited
Discontinued exploration activitiesthe second quarterof 2020.Proved reserves estimates were updated in the Central Louisiana Austin Chalk trend
Outlook
Production and Capital Guidance
Fourth-quarter 2019 production is expectedgas prices persist at depressed levels,our reserve
Capital expenditures are expected to be $6.3 billion versusdetermine DD&A expense
44
2019.
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||||||
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | |||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 |
|
|
|
|
|
|
|
|
|
Alaska | $ | 306 |
| 427 |
| 1,152 |
| 1,369 |
Lower 48 |
| 26 |
| 513 |
| 425 |
| 1,231 |
Canada |
| 51 |
| 34 |
| 273 |
| 2 |
Europe and North Africa |
| 2,001 |
| 241 |
| 2,615 |
| 776 |
Asia Pacific and Middle East |
| 613 |
| 577 |
| 1,655 |
| 1,504 |
Other International |
| 73 |
| 316 |
| 285 |
| 267 |
Corporate and Other |
| (14) |
| (247) |
| 64 |
| (760) |
Net income attributable to ConocoPhillips | $ | 3,056 |
| 1,861 |
| 6,469 |
| 4,389 |
A $1.8 billion after-tax gain associated with the completion of the sale of two ConocoPhillips U.K. subsidiaries to Chrysaor E&P Limited.
Higher crude oil
An unrealized gain of $116 million after-tax on our Cenovus Energy (CVE) common sharesU.K. assets in the third quarter of 2019 and our
A $1642020, reflected in other income, as comparedto a $373 million income tax benefitafter-tax unrealized gain in
Third quarter 2019 net income increases were partly offset by:
Lower realized crude oil, NGL and natural gas prices.
Lowerbenefitrelated to the recognition of U.S. tax basis inour
Higher exploration expenses, primarily in our Lower 48 segment due to $186 million after-tax of leasehold impairment and dry hole costs associated with our decision to discontinue exploration activities in the Central Louisiana Austin Chalk trend.
45
PDVSA.
Net income attributable to ConocoPhillips in the nine-month period ended September 30, 2019, increased
$2.1 billion. Earnings were positively impacted by:
A $2.1 billion after-tax gain associated with the completion of the sale of two ConocoPhillips U.K. subsidiaries to Chrysaor E&P Limited.
Higher crude oil sales volumes due to growth in the Lower 48 unconventionals and from the acquisition of incremental interests in operated assets in Alaska during the second and fourth quarters of 2018.
A $328 million higher after-tax unrealized gain on our Cenovus Energy common shares reflected in other income.
●
A $164 million income tax benefit related to deepwater incentive tax credits recognized for Malaysia Block G.
Increased earnings of $115 million related to the settlementof certain tax disputes and enhanced oil
Earnings
Lower realized crude oil, NGL and natural gas prices.
Higher DD&A associated with increased production volumes, primarily in the Australia-
Higher production and operating expenses,primarily due to decreased wellwork and transportation
Lowerrecorded within equity in earnings of affiliates.
The absence of a $109 million after-tax benefit from an accrual reduction related to a transportation cost ruling by the FERC.
See the “Segment Results” section for additional information.
Income Statement Analysis
Sales and other operating revenues for the three- and nine-month periods of 2019 decreased 18 percent and 7 percent, respectively, mainly due to lower realized crude oil, NGL and natural gas prices, partly offset by higher sales volumes of crude oil in the Lower 48 and Alaska.
Equity in earnings of affiliates for the nine-month period of 2019 decreased $116 million, primarily due to impairments of equity method investments in our Lower 48 segment of $95
Gain on dispositions
settlementagreement with PDVSA.Other income for in the nine-monthsix-month period of 2019 increased $463
settlement agreementwith
For discussion of our PDVSA settlement, see Note12—Contingencies
Exploration expenses for the three- and nine-month periods of 2019 increased $257 million and $325 million, respectively, primarily due to higher leasehold impairment production curtailments,and dry hole costslower legal
marketimpacts of certain key
Other expensesAcquisitionsand
gains recognized from foreign currency derivatives.See Note 22—13—Derivative and Financial Instrumentsin
47
Dollars
Summary Operating Statistics | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | |||||
| September 30 | September 30 | |||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
Average Net Production |
|
|
|
|
|
|
|
| |
Crude oil (MBD) |
| 710 |
| 635 |
| 709 |
| 632 | |
Natural gas liquids (MBD) |
| 114 |
| 106 |
| 114 |
| 102 | |
Bitumen (MBD) |
| 63 |
| 65 |
| 59 |
| 65 | |
Natural gas (MMCFD)* |
| 2,871 |
| 2,732 |
| 2,826 |
| 2,771 | |
|
|
|
|
|
|
|
|
|
|
Total Production (MBOED) |
| 1,366 |
| 1,261 |
| 1,353 |
| 1,261 | |
|
|
|
|
| |||||
|
| Dollars Per Unit | |||||||
Average Sales Prices |
|
|
|
|
|
|
|
| |
Crude oil (per barrel) | $ | 59.57 |
| 73.05 |
| 61.26 |
| 69.74 | |
Natural gas liquids (per barrel) |
| 15.59 |
| 35.14 |
| 20.24 |
| 31.31 | |
Bitumen (per barrel) |
| 32.54 |
| 34.15 |
| 34.11 |
| 26.46 | |
Natural gas (per thousand cubic feet) |
| 4.74 |
| 5.81 |
| 5.17 |
| 5.37 | |
|
|
|
|
|
| ||||
|
| Millions of Dollars | |||||||
Exploration Expenses |
|
|
|
|
|
|
|
| |
General administrative, geological and geophysical, |
|
|
|
|
|
|
|
| |
| lease rental, and other | $ | 67 |
| 75 |
| 231 |
| 203 |
Leasehold impairment |
| 154 |
| 16 |
| 196 |
| 36 | |
Dry holes |
| 139 |
| 12 |
| 165 |
| 28 | |
|
| $ | 360 |
| 103 |
| 592 |
| 267 |
*Represents quantities available for sale and excludes gas equivalent of natural gas liquids included above. | |||||||||
Exploration Expenses
to the forced shutdownof the Es Sider export terminal and othereastern
An increased interest48, Canada, Norwayand China.
Higher2019, our Australia-West assets in the second
Lower unplanned downtime, primarily civil unrestin the U.K. and Malaysia.
first quarter of 2020.
Normal field decline.
Disposition impacts from non-core asset sales, primarily in the Lower 48.
48
Total production increased 92 MBOED or 7 percent in the nine-month period of 2019, primarily due to:
●
An increased interest in the Western North Slope (WNS)48, Norway, Canada and GKA of Alaska following acquisitions closed in 2018.
Higher production in Norway due to drilling activity and the startup of Aasta Hansteen in December 2018.
The increase in production during the nine-month period of 2019 was partly offset by:
Normal field decline.
Disposition impacts from non-core asset sales, primarily in the Lower 48.
Planned turnarounds at the Greater Ekofisk Area in Norway, QG3 in Qatar and Surmont in Canada.
China.
Libya, production wasslightly higher compared with the sameperiod a year ago.
49
Segment Results | ||||||||
|
|
|
|
|
|
|
|
|
Alaska | ||||||||
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | |||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
Net Income Attributable to ConocoPhillips |
|
|
|
|
|
|
|
|
(millions of dollars) | $ | 306 |
| 427 |
| 1,152 |
| 1,369 |
|
|
|
|
|
|
|
|
|
Average Net Production |
|
|
|
|
|
|
|
|
Crude oil (MBD) |
| 190 |
| 152 |
| 200 |
| 165 |
Natural gas liquids (MBD) |
| 11 |
| 12 |
| 15 |
| 14 |
Natural gas (MMCFD) |
| 6 |
| 5 |
| 7 |
| 6 |
|
|
|
|
|
|
|
|
|
Total Production (MBOED) |
| 202 |
| 165 |
| 216 |
| 180 |
|
|
|
| |||||
Average Sales Prices |
|
|
|
|
|
|
|
|
Crude oil (dollars per barrel) | $ | 62.78 |
| 76.47 |
| 64.34 |
| 72.44 |
Natural gas (dollars per thousand cubic feet) |
| 3.01 |
| 2.52 |
| 3.23 |
| 2.51 |
Earnings from Alaska for$81 million of tax benefits relatedto the nine-month periodsettlement of 2019 decreased $217 million, primarily because of lower realized crude oil prices, higher production
Acquisition Update
In the third quarter of 2019, we completed the previously announced Nuna discovery acreage acquisition for approximately $100 million, expanding the Kuparuk River Unit and leveraging legacy infrastructure.
50
Crude oil (MBD)
Lower 48 | ||||||||
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | |||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
Net Income Attributable to ConocoPhillips |
|
|
|
|
|
|
|
|
(millions of dollars) | $ | 26 |
| 513 |
| 425 |
| 1,231 |
|
|
|
|
|
|
|
|
|
Average Net Production |
|
|
|
|
|
|
|
|
Crude oil (MBD) |
| 277 |
| 240 |
| 264 |
| 218 |
Natural gas liquids (MBD) |
| 84 |
| 73 |
| 80 |
| 68 |
Natural gas (MMCFD) |
| 649 |
| 608 |
| 604 |
| 589 |
|
|
|
|
|
|
|
|
|
Total Production (MBOED) |
| 469 |
| 414 |
| 444 |
| 384 |
|
|
|
| |||||
Average Sales Prices |
|
|
|
|
|
|
|
|
Crude oil (dollars per barrel) | $ | 54.38 |
| 67.73 |
| 55.63 |
| 65.38 |
Natural gas liquids (dollars per barrel) |
| 13.04 |
| 32.17 |
| 17.03 |
| 28.06 |
Natural gas (dollars per thousand cubic feet) |
| 1.80 |
| 2.80 |
| 2.19 |
| 2.63 |
166
In the nine-month period of 2019, earnings decreased $806 million, primarily due to lower realized crude oil, NGL and natural gas prices; higher DD&A associated with increased production volumes; higher exploration expenses, primarily due to $194 million of leasehold impairment and dry hole costs associated with our decision to discontinue exploration activities in the Central Louisiana Austin Chalk trend; higher production and operating expenses, associated with higher production volumes; and lower increased equity in
For additional information related to our impairmentWind River
Statements, for additional informationrelated to the Wind River Basin operations area impairment.
51
Asset Disposition Update
In January 2019, we entered into agreements to sell our 12.4 percent ownership interests in the Golden Pass LNG Terminal and Golden Pass Pipeline. We have also entered into agreements to amend our contractual obligations for retaining use of the facilities. As a result of entering into these agreements, we recognized a before-tax impairment of $60 million in the first quarter of 2019 which is included in the “Equity in earnings of affiliates” line on our consolidated income statement. In the second quarter of 2019, we completed2020 include unutilized transportation costs.
Canada | ||||||||
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | |||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
Net Income Attributable to ConocoPhillips |
|
|
|
|
|
|
|
|
(millions of dollars) | $ | 51 |
| 34 |
| 273 |
| 2 |
|
|
|
|
|
|
|
|
|
Average Net Production |
|
|
|
|
|
|
|
|
Crude oil (MBD) |
| 1 |
| 1 |
| 1 |
| 1 |
Natural gas liquids (MBD) |
| - |
| 2 |
| - |
| 1 |
Bitumen (MBD) |
| 63 |
| 65 |
| 59 |
| 65 |
Natural gas (MMCFD) |
| 9 |
| 12 |
| 8 |
| 13 |
|
|
|
|
|
|
|
|
|
Total Production (MBOED) |
| 66 |
| 70 |
| 62 |
| 69 |
|
|
|
| |||||
Average Sales Prices |
|
|
|
|
|
|
|
|
Bitumen (dollars per barrel)* |
| 32.54 |
| 34.15 |
| 34.11 |
| 26.46 |
*Average prices for sales of bitumen excludes additional value realized from the purchase and sale of third-party volumes for optimization of our pipeline capacity between Canada and the U.S. Gulf Coast. | ||||||||
purchase and sale of third-party volumes for optimization of
Total average production decreased 4 MBOEDincludes 140,000net acres in the three-month periodliquids-rich Inga Fireweed assetMontney zone,
52
(MBOED)
Europe and North Africa | ||||||||
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | |||||
September 30 | September 30 | |||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
Net Income Attributable to ConocoPhillips |
|
|
|
|
|
|
|
|
(millions of dollars) | $ | 2,001 |
| 241 |
| 2,615 |
| 776 |
|
|
|
|
|
|
|
|
|
Average Net Production |
|
|
|
|
|
|
|
|
Crude oil (MBD) |
| 149 |
| 145 |
| 143 |
| 147 |
Natural gas liquids (MBD) |
| 7 |
| 8 |
| 7 |
| 8 |
Natural gas (MMCFD) |
| 473 |
| 452 |
| 531 |
| 502 |
|
|
|
|
|
|
|
|
|
Total Production (MBOED) |
| 235 |
| 229 |
| 238 |
| 240 |
|
|
|
| |||||
Average Sales Prices |
|
|
|
|
|
|
|
|
Crude oil (dollars per barrel) | $ | 63.47 |
| 76.54 |
| 65.17 |
| 71.38 |
Natural gas liquids (dollars per barrel) |
| 23.20 |
| 38.80 |
| 28.65 |
| 37.75 |
Natural gas (dollars per thousand cubic feet) |
| 3.60 |
| 7.62 |
| 4.98 |
| 7.40 |
124
Average production increased 3 percentdisposition in the third quarter of 2019, primarilylower production in Libya due
Asset Disposition Update
In April civil unrest.It is unknown when exports will resume.
53
Asia Pacific and Middle East | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | |||||
| September 30 | September 30 | |||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to ConocoPhillips |
|
|
|
|
|
|
|
| |
| (millions of dollars) | $ | 613 |
| 577 |
| 1,655 |
| 1,504 |
|
|
|
|
|
|
|
|
|
|
Average Net Production |
|
|
|
|
|
|
|
| |
Crude oil (MBD) |
|
|
|
|
|
|
|
| |
| Consolidated operations |
| 79 |
| 84 |
| 88 |
| 87 |
| Equity affiliates |
| 14 |
| 13 |
| 13 |
| 14 |
| Total crude oil |
| 93 |
| 97 |
| 101 |
| 101 |
|
|
|
|
|
|
|
|
|
|
Natural gas liquids (MBD) |
|
|
|
|
|
|
|
| |
| Consolidated operations |
| 4 |
| 3 |
| 4 |
| 3 |
| Equity affiliates |
| 8 |
| 8 |
| 8 |
| 8 |
| Total natural gas liquids |
| 12 |
| 11 |
| 12 |
| 11 |
|
|
|
|
|
|
|
|
|
|
Natural gas (MMCFD) |
|
|
|
|
|
|
|
| |
| Consolidated operations |
| 658 |
| 630 |
| 633 |
| 617 |
| Equity affiliates |
| 1,076 |
| 1,025 |
| 1,043 |
| 1,044 |
| Total natural gas |
| 1,734 |
| 1,655 |
| 1,676 |
| 1,661 |
|
|
|
|
|
|
|
|
|
|
Total Production (MBOED) |
| 394 |
| 383 |
| 393 |
| 388 | |
|
|
|
|
|
|
|
|
|
|
Average Sales Prices |
|
|
|
|
|
|
|
| |
Crude oil (dollars per barrel) |
|
|
|
|
|
|
|
| |
| Consolidated operations | $ | 62.01 |
| 74.78 |
| 64.75 |
| 71.98 |
| Equity affiliates |
| 59.91 |
| 76.62 |
| 61.23 |
| 73.00 |
| Total crude oil |
| 61.69 |
| 75.02 |
| 64.28 |
| 72.13 |
Natural gas liquids (dollars per barrel) |
|
|
|
|
|
|
|
| |
| Consolidated operations |
| 30.13 |
| 52.30 |
| 38.13 |
| 48.15 |
| Equity affiliates |
| 30.18 |
| 49.71 |
| 36.49 |
| 45.74 |
| Total natural gas liquids |
| 30.17 |
| 50.71 |
| 37.04 |
| 46.48 |
Natural gas (dollars per thousand cubic feet) |
|
|
|
|
|
|
|
| |
| Consolidated operations |
| 5.78 |
| 6.53 |
| 6.01 |
| 5.88 |
| Equity affiliates |
| 6.40 |
| 6.35 |
| 6.48 |
| 5.70 |
| Total natural gas |
| 6.17 |
| 6.42 |
| 6.31 |
| 5.76 |
89
2019.
54
Average production increased 11 MBOED in the third quarter of 2019, primarily due to new production from Malaysia, including first oil from Gumusut Phase 2; new wells online in China; and lower unplanned downtime. Partly offsetting this production increase was normal field decline. In the nine-month period of 2019, average production increased 1 percent.
Asset DispositionsDisposition Update
In October 2019, we announced an agreement to sell the subsidiaries that hold our Australia-West assets and operations, to Santos for $1.39 billion, plus customary adjustments, withand
See Note 5—Asset Dispositions in the Notes to Consolidated Financial Statements, for
Other International | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Nine Months Ended | |||||
| September 30 | September 30 | |||||||
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | |
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to ConocoPhillips |
|
|
|
|
|
|
|
| |
(millions of dollars) | $ | 73 |
| 316 |
| 285 |
| 267 | |
thistransaction, see Note 4—
Exploration Update
In July
55
Corporate and Other |
| ||||||||
|
|
|
|
|
|
|
|
|
|
| Millions of Dollars |
| |||||||
| Three Months Ended |
| Nine Months Ended |
| |||||
September 30 | September 30 |
| |||||||
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| |
Net Income (Loss) Attributable to ConocoPhillips |
|
|
|
|
|
|
|
|
|
Net interest | $ | (123) |
| (174) |
| (450) |
| (508) |
|
Corporate general and administrative expenses |
| (34) |
| (36) |
| (148) |
| (139) |
|
Technology |
| 43 |
| 64 |
| 129 |
| 117 |
|
Other |
| 100 |
| (101) |
| 533 |
| (230) |
|
| $ | (14) |
| (247) |
| 64 |
| (760) |
|
Net interestexpense consists of interest and financingexpense, net of interest income and capitalizedinterest.
lowercash and cash
The categoryrevenues.
56
CAPITAL RESOURCES AND LIQUIDITY |
|
|
|
|
| |
|
|
|
|
|
|
|
Financial Indicators |
|
|
|
|
| |
|
|
| Millions of Dollars | |||
| September 30 |
|
| December 31 | ||
|
|
| 2019 |
|
| 2018 |
|
|
|
|
|
|
|
Short-term debt | $ | 121 |
|
| 112 | |
Total debt |
| 14,920 |
|
| 14,968 | |
Total equity |
| 35,239 |
|
| 32,064 | |
Percent of total debt to capital* |
| 30 | % |
| 32 | |
Percent of floating-rate debt to total debt |
| 5 | % |
| 5 | |
*Capital includes total debt and total equity. | ||||||
an undrawn credit facility of $6 billion,totaling $12.9 billion of liquidity.We believe current cash
While the stability divestitureof our cash flows from operating activities benefits from geographic diversity, ourU.K. and
57
Investing Activities
2019.In the nine-month period of 2019, we completed the sale of several assets including our 30 percent interest in the Greater Sunrise Fields for $350 million and $77 million of contingent payments from Cenovus Energy. In the thirdsecond quarter of 2019,2020, we completedthe saledivestiture of two ConocoPhillips U.K. subsidiaries to Chrysaor E&P Limited for $2.2 billion.
In October 2019, we announced an agreement to sell the subsidiaries that hold our Australia-WestAustralia-
In the first nine months of 2018, we completed 2020, proceeds
respectively.See Note 5—4—Asset
informationon
The amount of the facility is not subject to
2020.We may consider
58
Off-Balance Sheet Arrangements
20,2020.
59
Dollars
Capital Expenditures |
|
|
|
|
|
|
|
|
|
| Millions of Dollars | |||
| Nine Months Ended | |||
September 30 | ||||
|
| 2019 |
| 2018 |
|
|
|
|
|
Alaska | $ | 1,207 |
| 1,034 |
Lower 48 |
| 2,613 |
| 2,475 |
Canada |
| 315 |
| 318 |
Europe and North Africa |
| 537 |
| 678 |
Asia Pacific and Middle East |
| 322 |
| 493 |
Other International |
| 1 |
| 6 |
Corporate and Other |
| 46 |
| 129 |
Capital expenditures and investments | $ | 5,041 |
| 5,133 |
Six Months Ended
Development activities across assetsliquids-rich portionof the Montney in NorwayCanada and the U.K.
Optimization optimizationof oil sands development and appraisal activities in liquids-rich plays in Canada.
Capital
July 1, 2020.
60
Estimated future environmental remediationcosts are subject to change due to such factors asthe uncertain
61
Climate Change
In
appeal.
62
CAUTIONARY STATEMENTFOR THE PURPOSES OF THE “SAFE HARBOR”PROVISIONS OF
63
regulations and litigation.
business.
64
(principal financial officer) carried out
2020.
20182019 Annual Report onForm 10-K.10-K.Item 1A. RISK FACTORSThereyear ended December 31, 2019.
on Form 10-K for the fiscal year endedDecember 31, 2019.
|
|
|
|
|
|
|
|
| Millions of Dollars |
| ||
Period | Total Number of Shares Purchased | * | Average Price Paid per Share |
| Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
| Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1-31, 2019 |
| 4,273,085 |
| $ | 60.38 |
| 4,273,085 |
| $ | 6,615 |
| |
August 1-31, 2019 |
| 4,792,186 |
|
| 53.76 |
| 4,792,186 |
|
| 6,358 |
| |
September 1-30, 2019 |
| 4,128,552 |
|
| 56.73 |
| 4,128,552 |
|
| 6,124 |
| |
|
| 13,193,823 |
| $ | 56.83 |
| 13,193,823 |
|
|
|
| |
*There were no repurchases of common stock from company employees in connection with the company's broad-based employee incentive plans. | ||||||||||||
On November 10, 2016, we announced plans to purchase up to $3 billion
65
64
Chief Executive Officer pursuant to Rule 13a-14(a)
under the Securities31.2*
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13a-14(a) under the Securities
66
CONOCOPHILLIPS/s/ Catherine A. BrooksCatherine A. BrooksVice President and Controller(Chief Accounting and Duly Authorized Officer)October 31, 201967