☒ | QUARTERLY REPORT PURSUANT TO |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 01-0562944 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbols | Name of each exchange on which registered | ||||||
Common Stock, $.01 Par Value | COP | New York Stock Exchange | ||||||
7% Debentures due 2029 | CUSIP—718507BK1 | New York Stock Exchange |
Page | |||||
Currencies | Accounting | ||||||||||
$ or USD | U.S. dollar | ARO | asset retirement obligation | ||||||||
CAD | Canadian dollar | ASC | accounting standards codification | ||||||||
EUR | Euro | ASU | accounting standards update | ||||||||
GBP | British pound | DD&A | depreciation, depletion and amortization | ||||||||
Units of Measurement | FASB | Financial Accounting Standards Board | |||||||||
BBL | barrel | ||||||||||
BCF | billion cubic feet | FIFO | first-in, first-out | ||||||||
BOE | barrels of oil equivalent | G&A | general and administrative | ||||||||
MBD | thousands of barrels per day | GAAP | generally accepted accounting principles | ||||||||
MCF | thousand cubic feet | ||||||||||
MBOD | thousand barrels of oil per day | LIFO | last-in, first-out | ||||||||
MM | million | NPNS | normal purchase normal sale | ||||||||
MMBOE | million barrels of oil equivalent | PP&E | properties, plants and equipment | ||||||||
MMBOD | million barrels of oil per day | VIE | variable interest entity | ||||||||
MBOED | thousands of barrels of oil equivalent per day | ||||||||||
MMBOED | millions of barrels of oil equivalent per day | Miscellaneous | |||||||||
MMBTU | million British thermal units | DE&I | diversity, equity and inclusion | ||||||||
MMCFD | million cubic feet per day | EPA | Environmental Protection Agency | ||||||||
ESG | Environmental, Social and Corporate Governance | ||||||||||
Industry | EU | European Union | |||||||||
BLM | Bureau of Land Management | FERC | Federal Energy Regulatory Commission | ||||||||
CBM | coalbed methane | ||||||||||
CCUS | carbon capture utilization and | GHG | greenhouse gas | ||||||||
storage | HSE | health, safety and environment | |||||||||
E&P | exploration and production | ICC | International Chamber of Commerce | ||||||||
FEED | front-end engineering and design | ICSID | World Bank’s International | ||||||||
FPS | floating production system | Centre for Settlement of | |||||||||
FPSO | floating production, storage and | Investment Disputes | |||||||||
offloading | IRS | Internal Revenue Service | |||||||||
G&G | geological and geophysical | OTC | over-the-counter | ||||||||
JOA | joint operating agreement | NYSE | New York Stock Exchange | ||||||||
LNG | liquefied natural gas | SEC | U.S. Securities and Exchange | ||||||||
NGLs | natural gas liquids | Commission | |||||||||
OPEC | Organization of Petroleum | TSR | total shareholder return | ||||||||
Exporting Countries | U.K. | United Kingdom | |||||||||
PSC | production sharing contract | U.S. | United States of America | ||||||||
PUDs | proved undeveloped reserves | VROC | variable return of cash | ||||||||
SAGD | steam-assisted gravity drainage | ||||||||||
WCS | Western Canada Select | ||||||||||
WTI | West Texas Intermediate |
1 | ConocoPhillips 2022 Q1 10-Q |
Financial Statements |
Consolidated Income Statement | ConocoPhillips |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenues and Other Income | ||||||||||||||
Sales and other operating revenues | $ | 17,762 | 9,826 | |||||||||||
Equity in earnings of affiliates | 426 | 122 | ||||||||||||
Gain on dispositions | 817 | 233 | ||||||||||||
Other income | 286 | 378 | ||||||||||||
Total Revenues and Other Income | 19,291 | 10,559 | ||||||||||||
Costs and Expenses | ||||||||||||||
Purchased commodities | 6,751 | 4,483 | ||||||||||||
Production and operating expenses | 1,581 | 1,383 | ||||||||||||
Selling, general and administrative expenses | 187 | 311 | ||||||||||||
Exploration expenses | 69 | 84 | ||||||||||||
Depreciation, depletion and amortization | 1,823 | 1,886 | ||||||||||||
Impairments | 2 | (3) | ||||||||||||
Taxes other than income taxes | 814 | 370 | ||||||||||||
Accretion on discounted liabilities | 61 | 62 | ||||||||||||
Interest and debt expense | 217 | 226 | ||||||||||||
Foreign currency transaction loss | 24 | 19 | ||||||||||||
Other expenses | (136) | 24 | ||||||||||||
Total Costs and Expenses | 11,393 | 8,845 | ||||||||||||
Income before income taxes | 7,898 | 1,714 | ||||||||||||
Income tax provision | 2,139 | 732 | ||||||||||||
Net Income | $ | 5,759 | 982 | |||||||||||
Net Income Per Share of Common Stock (dollars) | ||||||||||||||
Basic | $ | 4.41 | 0.75 | |||||||||||
Diluted | 4.39 | 0.75 | ||||||||||||
Average Common Shares Outstanding (in thousands) | ||||||||||||||
Basic | 1,301,930 | 1,300,375 | ||||||||||||
Diluted | 1,307,404 | 1,302,691 |
ConocoPhillips 2022 Q1 10-Q | 2 |
Consolidated Statement of Comprehensive Income | ConocoPhillips |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income | $ | 5,759 | 982 | |||||||||||
Other comprehensive income | ||||||||||||||
Defined benefit plans | ||||||||||||||
Reclassification adjustment for amortization of prior service credit included in net income | (10) | (9) | ||||||||||||
Net change | (10) | (9) | ||||||||||||
Net actuarial gain arising during the period | — | 75 | ||||||||||||
Reclassification adjustment for amortization of net actuarial losses included in net income | 16 | 25 | ||||||||||||
Net change | 16 | 100 | ||||||||||||
Income taxes on defined benefit plans | (2) | (21) | ||||||||||||
Defined benefit plans, net of tax | 4 | 70 | ||||||||||||
Unrealized holding loss on securities | (4) | (1) | ||||||||||||
Income taxes on unrealized holding loss on securities | 1 | — | ||||||||||||
Unrealized holding loss on securities, net of tax | (3) | (1) | ||||||||||||
Foreign currency translation adjustments | 141 | 69 | ||||||||||||
Foreign currency translation adjustments, net of tax | 141 | 69 | ||||||||||||
Other Comprehensive Income, Net of Tax | 142 | 138 | ||||||||||||
Comprehensive Income | $ | 5,901 | 1,120 |
3 | ConocoPhillips 2022 Q1 10-Q |
Financial Statements |
Consolidated Balance Sheet | ConocoPhillips |
Millions of Dollars | ||||||||
March 31 2022 | December 31 2021 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 6,414 | 5,028 | |||||
Short-term investments | 730 | 446 | ||||||
Accounts and notes receivable (net of allowance of $2 and $2, respectively) | 7,807 | 6,543 | ||||||
Accounts and notes receivable—related parties | 72 | 127 | ||||||
Investment in Cenovus Energy | — | 1,117 | ||||||
Inventories | 1,174 | 1,208 | ||||||
Prepaid expenses and other current assets | 1,389 | 1,581 | ||||||
Total Current Assets | 17,586 | 16,050 | ||||||
Investments and long-term receivables | 8,309 | 7,113 | ||||||
Net properties, plants and equipment (net of accumulated DD&A of $64,711 and $64,735, respectively) | 64,642 | 64,911 | ||||||
Other assets | 2,771 | 2,587 | ||||||
Total Assets | $ | 93,308 | 90,661 | |||||
Liabilities | ||||||||
Accounts payable | $ | 4,875 | 5,002 | |||||
Accounts payable—related parties | 22 | 23 | ||||||
Short-term debt | 1,160 | 1,200 | ||||||
Accrued income and other taxes | 3,162 | 2,862 | ||||||
Employee benefit obligations | 446 | 755 | ||||||
Other accruals | 1,959 | 2,179 | ||||||
Total Current Liabilities | 11,624 | 12,021 | ||||||
Long-term debt | 17,586 | 18,734 | ||||||
Asset retirement obligations and accrued environmental costs | 5,815 | 5,754 | ||||||
Deferred income taxes | 6,556 | 6,179 | ||||||
Employee benefit obligations | 1,085 | 1,153 | ||||||
Other liabilities and deferred credits | 1,424 | 1,414 | ||||||
Total Liabilities | 44,090 | 45,255 | ||||||
Equity | ||||||||
Common stock (2,500,000,000 shares authorized at $0.01 par value) | ||||||||
Issued (2022—2,098,495,534 shares; 2021—2,091,562,747 shares) | ||||||||
Par value | 21 | 21 | ||||||
Capital in excess of par | 60,907 | 60,581 | ||||||
Treasury stock (at cost: 2022—805,045,987 shares; 2021—789,319,875 shares) | (52,344) | (50,920) | ||||||
Accumulated other comprehensive loss | (4,808) | (4,950) | ||||||
Retained earnings | 45,442 | 40,674 | ||||||
Total Equity | 49,218 | 45,406 | ||||||
Total Liabilities and Equity | $ | 93,308 | 90,661 |
ConocoPhillips 2022 Q1 10-Q | 4 |
Consolidated Statement of Cash Flows | ConocoPhillips |
Millions of Dollars | ||||||||
Three Months Ended March 31 | ||||||||
2022 | 2021 | |||||||
Cash Flows From Operating Activities | ||||||||
Net income | $ | 5,759 | 982 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation, depletion and amortization | 1,823 | 1,886 | ||||||
Impairments | 2 | (3) | ||||||
Dry hole costs and leasehold impairments | 7 | 6 | ||||||
Accretion on discounted liabilities | 61 | 62 | ||||||
Deferred taxes | 373 | 203 | ||||||
Undistributed equity earnings | 220 | 81 | ||||||
Gain on dispositions | (817) | (233) | ||||||
Gain on investment in Cenovus Energy | (251) | (308) | ||||||
Other | (152) | (581) | ||||||
Working capital adjustments | ||||||||
Increase in accounts and notes receivable | (1,535) | (785) | ||||||
Decrease (increase) in inventories | 27 | (51) | ||||||
Decrease (increase) in prepaid expenses and other current assets | 58 | (43) | ||||||
Increase (decrease) in accounts payable | (204) | 424 | ||||||
Increase (decrease) in taxes and other accruals | (303) | 440 | ||||||
Net Cash Provided by Operating Activities | 5,068 | 2,080 | ||||||
Cash Flows From Investing Activities | ||||||||
Capital expenditures and investments | (3,161) | (1,200) | ||||||
Working capital changes associated with investing activities | 363 | 61 | ||||||
Acquisition of businesses, net of cash acquired | 37 | 382 | ||||||
Proceeds from asset dispositions | 2,332 | (17) | ||||||
Net purchases of investments | (263) | (499) | ||||||
Collection of advances/loans—related parties | 55 | 52 | ||||||
Other | 26 | 6 | ||||||
Net Cash Used in Investing Activities | (611) | (1,215) | ||||||
Cash Flows From Financing Activities | ||||||||
Issuance of debt | 2,897 | — | ||||||
Repayment of debt | (3,964) | (26) | ||||||
Issuance of company common stock | 271 | (28) | ||||||
Repurchase of company common stock | (1,425) | (375) | ||||||
Dividends paid | (864) | (588) | ||||||
Other | (52) | 2 | ||||||
Net Cash Used in Financing Activities | (3,137) | (1,015) | ||||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 21 | (2) | ||||||
Net Change in Cash, Cash Equivalents and Restricted Cash | 1,341 | (152) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 5,398 | 3,315 | ||||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 6,739 | 3,163 |
5 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||
March 31 2022 | December 31 2021 | |||||||
Crude oil and natural gas | $ | 611 | 647 | |||||
Materials and supplies | 563 | 561 | ||||||
Total Inventories | $ | 1,174 | 1,208 | |||||
Inventories valued on the LIFO basis | $ | 353 | 395 |
ConocoPhillips 2022 Q1 10-Q | 6 |
Notes to Consolidated Financial Statements |
Assets Acquired | Millions of Dollars | ||||
Accounts receivable, net | $ | 337 | |||
Inventories | 20 | ||||
Net properties, plants and equipment | 8,582 | ||||
Other assets | 50 | ||||
Total assets acquired | $ | 8,989 | |||
Liabilities Assumed | |||||
Accounts payable | $ | 206 | |||
Accrued income and other taxes | 6 | ||||
Other accruals | 20 | ||||
Asset retirement obligations and accrued environmental costs | 86 | ||||
Other liabilities and deferred credits | 36 | ||||
Total liabilities assumed | $ | 354 | |||
Net assets acquired | $ | 8,635 |
Millions of Dollars | |||||||||||
Three Months Ended March 31, 2021 | |||||||||||
Supplemental Pro Forma (unaudited) | As Reported | Pro forma Shell | Pro forma Combined | ||||||||
Total Revenues and Other Income | 10,559 | 596 | 11,155 | ||||||||
Income before income taxes | 1,714 | 119 | 1,833 | ||||||||
Net Income | 982 | 91 | 1,073 | ||||||||
Earnings per share ($ per share): | |||||||||||
Basic net income | $ | 0.75 | 0 | 0.82 | |||||||
Diluted net income | 0.75 | 0 | 0.82 |
7 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
ConocoPhillips 2022 Q1 10-Q | 8 |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Total Net gain on equity securities | $ | 251 | 308 | |||||||||||
Less: Net gain on equity securities sold during the period | 251 | — | ||||||||||||
Unrealized gain on equity securities still held at the reporting date | $ | — | 308 |
9 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||
March 31 2022 | December 31 2021 | |||||||
2.4% Notes due 2022 | $ | 329 | 329 | |||||
7.65% Debentures due 2023 | 78 | 78 | ||||||
3.35% Notes due 2024 | 426 | 426 | ||||||
2.125% Notes due 2024 | 900 | — | ||||||
8.2% Notes due 2025 | 134 | 134 | ||||||
3.35% Debentures due 2025 | 199 | 199 | ||||||
2.4% Notes due 2025 | 900 | — | ||||||
6.875% Debentures due 2026 | 67 | 67 | ||||||
4.95% Notes due 2026 | 1,250 | 1,250 | ||||||
7.8% Debentures due 2027 | 203 | 203 | ||||||
3.75% Notes due 2027 | 196 | 1,000 | ||||||
4.3% Notes due 2028 | 223 | 1,000 | ||||||
7.375% Debentures due 2029 | 92 | 92 | ||||||
7% Debentures due 2029 | 112 | 200 | ||||||
6.95% Notes due 2029 | 1,195 | 1,549 | ||||||
8.125% Notes due 2030 | 390 | 390 | ||||||
7.4% Notes due 2031 | 382 | 500 | ||||||
7.25% Notes due 2031 | 400 | 500 | ||||||
7.2% Notes due 2031 | 447 | 575 | ||||||
2.4% Notes due 2031 | 227 | 500 | ||||||
5.9% Notes due 2032 | 505 | 505 | ||||||
4.15% Notes due 2034 | 246 | 246 | ||||||
5.95% Notes due 2036 | 326 | 500 | ||||||
5.951% Notes due 2037 | 645 | 645 | ||||||
5.9% Notes due 2038 | 350 | 600 | ||||||
6.5% Notes due 2039 | 1,588 | 2,750 | ||||||
3.758% Notes due 2042 | 785 | — | ||||||
4.3% Notes due 2044 | 750 | 750 | ||||||
5.95% Notes due 2046 | 329 | 500 | ||||||
7.9% Debentures due 2047 | 60 | 60 | ||||||
4.875% Notes due 2047 | 319 | 800 | ||||||
4.85% Notes due 2048 | 219 | 600 | ||||||
3.8% Notes due 2052 | 1,100 | — | ||||||
4.025% Notes due 2062 | 1,770 | — | ||||||
Floating rate notes due 2022 at 1.06% – 1.41% during 2022 and 1.02% –1.12% during 2021 | 500 | 500 | ||||||
Marine Terminal Revenue Refunding Bonds due 2031 at 0.07% – 0.65% during 2022 and 0.04% – 0.15% during 2021 | 265 | 265 | ||||||
Industrial Development Bonds due 2035 at 0.07%% – 0.65% during 2022 and 0.04% – 0.12% during 2021 | 18 | 18 | ||||||
Other | 35 | 35 | ||||||
Debt at face value | 17,960 | 17,766 | ||||||
Finance leases | 1,308 | 1,261 | ||||||
Net unamortized premiums, discounts and debt issuance costs | (522) | 907 | ||||||
Total debt | 18,746 | 19,934 | ||||||
Short-term debt | (1,160) | (1,200) | ||||||
Long-term debt | $ | 17,586 | 18,734 |
ConocoPhillips 2022 Q1 10-Q | 10 |
Notes to Consolidated Financial Statements |
11 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
ConocoPhillips 2022 Q1 10-Q | 12 |
Millions of Dollars | ||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
Par Value | Capital in Excess of Par | Treasury Stock | Accum. Other Comprehensive Income (Loss) | Retained Earnings | Total | |||||||||||||||||||||
For the three months ended March 31, 2022 | ||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | 21 | 60,581 | (50,920) | (4,950) | 40,674 | 45,406 | |||||||||||||||||||
Net income | 5,759 | 5,759 | ||||||||||||||||||||||||
Other comprehensive income | 142 | 142 | ||||||||||||||||||||||||
Dividends declared | ||||||||||||||||||||||||||
Ordinary ($0.46 per common share) | (603) | (603) | ||||||||||||||||||||||||
Variable return of cash ($0.30 per common share) | (390) | (390) | ||||||||||||||||||||||||
Repurchase of company common stock | (1,425) | (1,425) | ||||||||||||||||||||||||
Distributed under benefit plans | 326 | 326 | ||||||||||||||||||||||||
Other | 1 | 2 | 3 | |||||||||||||||||||||||
Balances at March 31, 2022 | $ | 21 | 60,907 | (52,344) | (4,808) | 45,442 | 49,218 | |||||||||||||||||||
For the three months ended March 31, 2021 | ||||||||||||||||||||
Balances at December 31, 2020 | $ | 18 | 47,133 | (47,297) | (5,218) | 35,213 | 29,849 | |||||||||||||
Net income | 982 | 982 | ||||||||||||||||||
Other comprehensive income | 138 | 138 | ||||||||||||||||||
Dividends declared | ||||||||||||||||||||
Ordinary ($0.43 per common share) | (588) | (588) | ||||||||||||||||||
Acquisition of Concho | 3 | 13,122 | 13,125 | |||||||||||||||||
Repurchase of company common stock | (375) | (375) | ||||||||||||||||||
Distributed under benefit plans | 23 | 23 | ||||||||||||||||||
Other | 1 | 1 | ||||||||||||||||||
Balances at March 31, 2021 | $ | 21 | 60,278 | (47,672) | (5,080) | 35,608 | 43,155 | |||||||||||||
13 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
ConocoPhillips 2022 Q1 10-Q | 14 |
Notes to Consolidated Financial Statements |
15 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
ConocoPhillips 2022 Q1 10-Q | 16 |
Notes to Consolidated Financial Statements |
17 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||
March 31 2022 | December 31 2021 | |||||||
Assets | ||||||||
Prepaid expenses and other current assets | $ | 1,471 | 1,168 | |||||
Other assets | 154 | 75 | ||||||
Liabilities | ||||||||
Other accruals | 1,474 | 1,160 | ||||||
Other liabilities and deferred credits | 143 | 63 |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Sales and other operating revenues | $ | (407) | (279) | |||||||||||
Other income | 1 | 17 | ||||||||||||
Purchased commodities | 401 | 13 |
Open Position Long/(Short) | ||||||||
March 31 2022 | December 31 2021 | |||||||
Commodity | ||||||||
Natural gas and power (billions of cubic feet equivalent) | ||||||||
Fixed price | 7 | 4 | ||||||
Basis | (5) | (22) |
ConocoPhillips 2022 Q1 10-Q | 18 |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||||||||||||||
Carrying Amount | ||||||||||||||||||||
Cash and Cash Equivalents | Short-Term Investments | |||||||||||||||||||
March 31 2022 | December 31 2021 | March 31 2022 | December 31 2021 | |||||||||||||||||
Cash | $ | 594 | 670 | |||||||||||||||||
Demand Deposits | 1,459 | 1,554 | ||||||||||||||||||
Time Deposits | ||||||||||||||||||||
1 to 90 days | 4,341 | 2,363 | 277 | 217 | ||||||||||||||||
91 to 180 days | 215 | 4 | ||||||||||||||||||
Within one year | 10 | 4 | ||||||||||||||||||
One year through five years | ||||||||||||||||||||
U.S. Government Obligations | ||||||||||||||||||||
1 to 90 days | 5 | 431 | — | — | ||||||||||||||||
$ | 6,399 | 5,018 | 502 | 225 |
19 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||||||||||||||
Carrying Amount | ||||||||||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Investments and Long-Term Receivables | ||||||||||||||||||
March 31 2022 | December 31 2021 | March 31 2022 | December 31 2021 | March 31 2022 | December 31 2021 | |||||||||||||||
Major Security Type | ||||||||||||||||||||
Corporate Bonds | $ | — | 3 | 146 | 128 | 148 | 173 | |||||||||||||
Commercial Paper | 15 | 7 | 75 | 82 | ||||||||||||||||
U.S. Government Obligations | — | — | — | — | 10 | 2 | ||||||||||||||
U.S. Government Agency Obligations | 2 | 2 | 8 | 8 | ||||||||||||||||
Foreign Government Obligations | 3 | 7 | 2 | 2 | ||||||||||||||||
Asset-backed Securities | 2 | 2 | 61 | 63 | ||||||||||||||||
$ | 15 | 10 | 228 | 221 | 229 | 248 |
Millions of Dollars | ||||||||||||||
Amortized Cost Basis | Fair Value | |||||||||||||
March 31 2022 | December 31 2021 | March 31 2022 | December 31 2021 | |||||||||||
Major Security Type | ||||||||||||||
Corporate Bonds | $ | 298 | 305 | 294 | 304 | |||||||||
Commercial Paper | 90 | 88 | 90 | 89 | ||||||||||
U.S. Government Obligations | 10 | 2 | 10 | 2 | ||||||||||
U.S. Government Agency Obligations | 10 | 10 | 10 | 10 | ||||||||||
Foreign Government Obligations | 5 | 9 | 5 | 9 | ||||||||||
Asset-backed Securities | 63 | 65 | 63 | 65 | ||||||||||
$ | 476 | 479 | 472 | 479 |
ConocoPhillips 2022 Q1 10-Q | 20 |
Notes to Consolidated Financial Statements |
21 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | |||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Investment in Cenovus Energy | $ | — | — | — | — | 1,117 | — | — | 1,117 | ||||||||||||||||||||
Investments in debt securities | 10 | 462 | — | 472 | 2 | 477 | — | 479 | |||||||||||||||||||||
Commodity derivatives | 928 | 671 | 26 | 1,625 | 562 | 619 | 62 | 1,243 | |||||||||||||||||||||
Total assets | $ | 938 | 1,133 | 26 | 2,097 | 1,681 | 1,096 | 62 | 2,839 | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Commodity derivatives | $ | 949 | 528 | 140 | 1,617 | 593 | 543 | 87 | 1,223 | ||||||||||||||||||||
Total liabilities | $ | 949 | 528 | 140 | 1,617 | 593 | 543 | 87 | 1,223 |
ConocoPhillips 2022 Q1 10-Q | 22 |
Notes to Consolidated Financial Statements |
Millions of Dollars | |||||||||||||||||||||||
Amounts Subject to Right of Setoff | |||||||||||||||||||||||
Gross Amounts Recognized | Amounts Not Subject to Right of Setoff | Gross Amounts | Gross Amounts Offset | Net Amounts Presented | Cash Collateral | Net Amounts | |||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Assets | $ | 1,625 | 17 | 1,608 | 1,095 | 513 | — | 513 | |||||||||||||||
Liabilities | 1,617 | 8 | 1,609 | 1,095 | 514 | 44 | 470 | ||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Assets | $ | 1,243 | 85 | 1,158 | 650 | 508 | — | 508 | |||||||||||||||
Liabilities | 1,223 | 82 | 1,141 | 650 | 491 | 36 | 455 |
23 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | |||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||
March 31 2022 | December 31 2021 | March 31 2022 | December 31 2021 | ||||||||||||||
Financial assets | |||||||||||||||||
Investment in CVE common shares | $ | — | 1,117 | — | 1,117 | ||||||||||||
Commodity derivatives | 530 | 593 | 530 | 593 | |||||||||||||
Investments in debt securities | 472 | 479 | 472 | 479 | |||||||||||||
Loans and advances—related parties | 59 | 114 | 59 | 114 | |||||||||||||
Financial liabilities | |||||||||||||||||
Total debt, excluding finance leases | 17,438 | 18,673 | 20,150 | 22,451 | |||||||||||||
Commodity derivatives | 478 | 537 | 478 | 537 |
Millions of Dollars | ||||||||||||||
Defined Benefit Plans | Net Unrealized Gain (Loss) on Securities | Foreign Currency Translation | Accumulated Other Comprehensive Loss | |||||||||||
December 31, 2021 | $ | (31) | — | (4,919) | (4,950) | |||||||||
Other comprehensive income (loss) | 4 | (3) | 141 | 142 | ||||||||||
March 31, 2022 | $ | (27) | (3) | (4,778) | (4,808) |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Defined benefit plans | $ | 4 | 12 |
ConocoPhillips 2022 Q1 10-Q | 24 |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||
Three Months Ended March 31 | ||||||||
Cash Payments | 2022 | 2021 | ||||||
Interest | $ | 287 | 233 | |||||
Income taxes | 1,640 | 53 | ||||||
Net Sales (Purchases) of Investments | ||||||||
Short-term investments purchased | $ | (521) | (3,432) | |||||
Short-term investments sold | 306 | 2,966 | ||||||
Long-term investments purchased | (66) | (60) | ||||||
Long-term investments sold | 18 | 27 | ||||||
$ | (263) | (499) |
Millions of Dollars | |||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
U.S. | Int'l. | U.S. | Int'l. | ||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | |||||||||||||||||||||||||||||||||||
Service cost | $ | 16 | 13 | 21 | 15 | — | — | ||||||||||||||||||||||||||||
Interest cost | 12 | 21 | 13 | 20 | 1 | 1 | |||||||||||||||||||||||||||||
Expected return on plan assets | (13) | (34) | (24) | (30) | — | — | |||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | — | — | (10) | (9) | |||||||||||||||||||||||||||||
Recognized net actuarial loss | 6 | 2 | 15 | 8 | — | — | |||||||||||||||||||||||||||||
Settlements | 4 | — | 2 | — | — | — | |||||||||||||||||||||||||||||
Curtailments | — | — | 12 | — | — | — | |||||||||||||||||||||||||||||
Special Termination Benefits | — | — | 9 | — | — | — | |||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 25 | 2 | 48 | 13 | (9) | (8) | ||||||||||||||||||||||||||||
25 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | |||||||||||||||||
Three Months Ended March 31 | |||||||||||||||||
Significant Transactions with Equity Affiliates | 2022 | 2021 | |||||||||||||||
Operating revenues and other income | $ | 22 | 17 | ||||||||||||||
Operating expenses and selling, general and administrative expenses | 46 | 26 | |||||||||||||||
Net interest (income) expense* | $ | — | (1) |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue from contracts with customers | $ | 14,506 | 7,161 | |||||||||||
Revenue from contracts outside the scope of ASC Topic 606 | ||||||||||||||
Physical contracts meeting the definition of a derivative | 3,140 | 2,974 | ||||||||||||
Financial derivative contracts | 116 | (309) | ||||||||||||
Consolidated sales and other operating revenues | $ | 17,762 | 9,826 |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue from Outside the Scope of ASC Topic 606 by Segment | ||||||||||||||
Lower 48 | $ | 2,444 | 2,466 | |||||||||||
Canada | 560 | 303 | ||||||||||||
Europe, Middle East and North Africa | 136 | 205 | ||||||||||||
Physical contracts meeting the definition of a derivative | $ | 3,140 | 2,974 |
ConocoPhillips 2022 Q1 10-Q | 26 |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue from Outside the Scope of ASC Topic 606 by Product | ||||||||||||||
Crude oil | $ | 219 | 124 | |||||||||||
Natural gas | 2,773 | 2,727 | ||||||||||||
Other | 148 | 123 | ||||||||||||
Physical contracts meeting the definition of a derivative | $ | 3,140 | 2,974 |
Millions of Dollars | |||||
Contract Liabilities | |||||
At December 31, 2021 | $ | 50 | |||
Contractual payments received | 26 | ||||
Revenue recognized | (56) | ||||
At March 31, 2022 | $ | 20 | |||
Amounts Recognized in the Consolidated Balance Sheet at March 31, 2022 | |||||
Current liabilities | $ | 1 | |||
Noncurrent liabilities | 19 | ||||
$ | 20 |
27 | ConocoPhillips 2022 Q1 10-Q |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Sales and Other Operating Revenues | ||||||||||||||
Alaska | $ | 1,918 | 1,133 | |||||||||||
Lower 48 | 11,557 | 6,513 | ||||||||||||
Intersegment eliminations | (7) | (2) | ||||||||||||
Lower 48 | 11,550 | 6,511 | ||||||||||||
Canada | 1,520 | 867 | ||||||||||||
Intersegment eliminations | (651) | (305) | ||||||||||||
Canada | 869 | 562 | ||||||||||||
Europe, Middle East and North Africa | 2,589 | 978 | ||||||||||||
Asia Pacific | 750 | 577 | ||||||||||||
Other International | — | 1 | ||||||||||||
Corporate and Other | 86 | 64 | ||||||||||||
Consolidated sales and other operating revenues | $ | 17,762 | 9,826 | |||||||||||
Sales and Other Operating Revenues by Geographic Location(1) | ||||||||||||||
United States | $ | 13,553 | 7,707 | |||||||||||
Canada | 869 | 562 | ||||||||||||
China | 273 | 155 | ||||||||||||
Indonesia | 159 | 196 | ||||||||||||
Libya | 431 | 230 | ||||||||||||
Malaysia | 318 | 226 | ||||||||||||
Norway | 932 | 412 | ||||||||||||
United Kingdom | 1,226 | 336 | ||||||||||||
Other foreign countries | 1 | 2 | ||||||||||||
Worldwide consolidated | $ | 17,762 | 9,826 | |||||||||||
Sales and Other Operating Revenues by Product | ||||||||||||||
Crude oil | $ | 9,870 | 4,495 | |||||||||||
Natural gas | 5,998 | 4,511 | ||||||||||||
Natural gas liquids | 879 | 237 | ||||||||||||
Other(2) | 1,015 | 583 | ||||||||||||
Consolidated sales and other operating revenues by product | $ | 17,762 | 9,826 |
ConocoPhillips 2022 Q1 10-Q | 28 |
Notes to Consolidated Financial Statements |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31 | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income (Loss) | ||||||||||||||
Alaska | $ | 584 | 159 | |||||||||||
Lower 48 | 2,790 | 468 | ||||||||||||
Canada | 291 | 10 | ||||||||||||
Europe, Middle East and North Africa | 412 | 153 | ||||||||||||
Asia Pacific | 1,136 | 317 | ||||||||||||
Other International | — | (4) | ||||||||||||
Corporate and Other | 546 | (121) | ||||||||||||
Consolidated net income (loss) | $ | 5,759 | 982 |
Millions of Dollars | ||||||||
March 31 2022 | December 31 2021 | |||||||
Total Assets | ||||||||
Alaska | $ | 14,708 | 14,812 | |||||
Lower 48 | 42,994 | 41,699 | ||||||
Canada | 7,731 | 7,439 | ||||||
Europe, Middle East and North Africa | 9,179 | 9,125 | ||||||
Asia Pacific | 10,472 | 9,840 | ||||||
Other International | 2 | 1 | ||||||
Corporate and Other | 8,222 | 7,745 | ||||||
Consolidated total assets | $ | 93,308 | 90,661 |
29 | ConocoPhillips 2022 Q1 10-Q |
ConocoPhillips 2022 Q1 10-Q | 30 |
Management’s Discussion and Analysis |
31 | ConocoPhillips 2022 Q1 10-Q |
Management’s Discussion and Analysis |
ConocoPhillips 2022 Q1 10-Q | 32 |
33 | ConocoPhillips 2022 Q1 10-Q |
Results of Operations |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Alaska | $ | 584 | 159 | |||||||||||
Lower 48 | 2,790 | 468 | ||||||||||||
Canada | 291 | 10 | ||||||||||||
Europe, Middle East and North Africa | 412 | 153 | ||||||||||||
Asia Pacific | 1,136 | 317 | ||||||||||||
Other International | — | (4) | ||||||||||||
Corporate and Other | 546 | (121) | ||||||||||||
Net income (loss) | $ | 5,759 | $ | 982 |
ConocoPhillips 2022 Q1 10-Q | 34 |
Results of Operations |
35 | ConocoPhillips 2022 Q1 10-Q |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Average Net Production | ||||||||||||||
Crude oil (MBD) | ||||||||||||||
Consolidated operations | 903 | 804 | ||||||||||||
Equity affiliates | 12 | 14 | ||||||||||||
Total crude oil | 915 | 818 | ||||||||||||
Natural gas liquids (MBD) | ||||||||||||||
Consolidated operations | 216 | 105 | ||||||||||||
Equity affiliates | 7 | 8 | ||||||||||||
Total natural gas liquids | 223 | 113 | ||||||||||||
Bitumen (MBD) | 67 | 70 | ||||||||||||
Natural gas (MMCFD) | ||||||||||||||
Consolidated operations | 2,126 | 2,074 | ||||||||||||
Equity affiliates | 1,127 | 1,081 | ||||||||||||
Total natural gas | 3,253 | 3,155 | ||||||||||||
Total Production (MBOED) | 1,747 | 1,527 |
Dollars Per Unit | ||||||||||||||
Average Sales Prices | ||||||||||||||
Crude oil (per bbl) | ||||||||||||||
Consolidated operations | $ | 94.79 | 57.18 | |||||||||||
Equity affiliates | 97.20 | 59.73 | ||||||||||||
Total crude oil | 94.82 | 57.22 | ||||||||||||
Natural gas liquids (per bbl) | ||||||||||||||
Consolidated operations | 40.95 | 24.36 | ||||||||||||
Equity affiliates | 67.04 | 48.89 | ||||||||||||
Total natural gas liquids | 41.80 | 26.44 | ||||||||||||
Bitumen (per bbl) | 65.86 | 30.78 | ||||||||||||
Natural gas (per MCF) | ||||||||||||||
Consolidated operations | 8.81 | 4.89 | ||||||||||||
Equity affiliates | 8.86 | 3.54 | ||||||||||||
Total natural gas | 8.83 | 4.42 |
Millions of Dollars | ||||||||||||||
Exploration Expenses | ||||||||||||||
General administrative, geological and geophysical, lease rental, and other | $ | 62 | 78 | |||||||||||
Leasehold impairment | 6 | — | ||||||||||||
Dry holes | 1 | 6 | ||||||||||||
$ | 69 | 84 |
ConocoPhillips 2022 Q1 10-Q | 36 |
Results of Operations |
37 | ConocoPhillips 2022 Q1 10-Q |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income ($MM) | $ | 584 | 159 | |||||||||||
Average Net Production | ||||||||||||||
Crude oil (MBD) | 182 | 190 | ||||||||||||
Natural gas liquids (MBD) | 18 | 17 | ||||||||||||
Natural gas (MMCFD) | 35 | 8 | ||||||||||||
Total Production (MBOED) | 206 | 208 | ||||||||||||
Average Sales Prices | ||||||||||||||
Crude oil ($ per bbl) | $ | 95.54 | 59.56 | |||||||||||
Natural gas ($ per MCF) | 3.92 | 2.23 |
ConocoPhillips 2022 Q1 10-Q | 38 |
Results of Operations |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income ($MM) | $ | 2,790 | 468 | |||||||||||
Average Net Production | ||||||||||||||
Crude oil (MBD) | 538 | 416 | ||||||||||||
Natural gas liquids (MBD)* | 191 | 79 | ||||||||||||
Natural gas (MMCFD)* | 1,426 | 1,319 | ||||||||||||
Total Production (MBOED) | 967 | 715 | ||||||||||||
Average Sales Prices | ||||||||||||||
Crude oil ($ per bbl)** | $ | 93.55 | 55.68 | |||||||||||
Natural gas liquids ($ per bbl) | 40.42 | 23.99 | ||||||||||||
Natural gas ($ per MCF)** | 4.63 | 4.56 |
39 | ConocoPhillips 2022 Q1 10-Q |
Results of Operations |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income ($MM) | $ | 291 | 10 | |||||||||||
Average Net Production | ||||||||||||||
Crude oil (MBD) | 6 | 11 | ||||||||||||
Natural gas liquids (MBD) | 3 | 4 | ||||||||||||
Bitumen (MBD) | 67 | 70 | ||||||||||||
Natural gas (MMCFD) | 63 | 91 | ||||||||||||
Total Production (MBOED) | 86 | 100 | ||||||||||||
Average Sales Prices | ||||||||||||||
Crude oil ($ per bbl) | $ | 82.13 | 47.41 | |||||||||||
Natural gas liquids ($ per bbl) | 41.83 | 25.32 | ||||||||||||
Bitumen ($ per bbl) | 65.86 | 30.78 | ||||||||||||
Natural gas ($ per MCF) | 3.25 | 2.37 |
ConocoPhillips 2022 Q1 10-Q | 40 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income ($MM) | $ | 412 | 153 | |||||||||||
Consolidated Operations | ||||||||||||||
Average Net Production | ||||||||||||||
Crude oil (MBD) | 113 | 116 | ||||||||||||
Natural gas liquids (MBD) | 4 | 5 | ||||||||||||
Natural gas (MMCFD) | 331 | 309 | ||||||||||||
Total Production (MBOED) | 172 | 173 | ||||||||||||
Average Sales Prices | ||||||||||||||
Crude oil ($ per bbl) | $ | 94.68 | 57.75 | |||||||||||
Natural gas liquids ($ per bbl) | 58.67 | 34.70 | ||||||||||||
Natural gas ($ per MCF) | 29.18 | 5.99 |
41 | ConocoPhillips 2022 Q1 10-Q |
Results of Operations |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income ($MM) | $ | 1,136 | 317 | |||||||||||
Consolidated Operations | ||||||||||||||
Average Net Production | ||||||||||||||
Crude oil (MBD) | 64 | 71 | ||||||||||||
Natural gas (MMCFD) | 271 | 347 | ||||||||||||
Total Production (MBOED) | 109 | 129 | ||||||||||||
Average Sales Prices | ||||||||||||||
Crude oil ($ per bbl) | $ | 104.84 | 60.36 | |||||||||||
Natural gas ($ per MCF) | 7.01 | 5.88 |
ConocoPhillips 2022 Q1 10-Q | 42 |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income (Loss) ($MM) | $ | — | (4) |
Millions of Dollars | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Income (Loss) | ||||||||||||||
Net interest expense | $ | (218) | (270) | |||||||||||
Corporate general and administrative expenses | (79) | (129) | ||||||||||||
Technology | 58 | 41 | ||||||||||||
Other income | 785 | 237 | ||||||||||||
$ | 546 | (121) |
43 | ConocoPhillips 2022 Q1 10-Q |
Capital Resources and Liquidity |
Millions of Dollars | ||||||||
March 31 2022 | December 31 2021 | |||||||
Cash and cash equivalents | $ | 6,414 | 5,028 | |||||
Short-term investments | 730 | 446 | ||||||
Total debt | 18,746 | 19,934 | ||||||
Total equity | 49,218 | 45,406 | ||||||
Percent of total debt to capital* | 28 | % | 31 | |||||
Percent of floating-rate debt to total debt | 4 | % | 4 |
ConocoPhillips 2022 Q1 10-Q | 44 |
Capital Resources and Liquidity |
45 | ConocoPhillips 2022 Q1 10-Q |
Capital Resources and Liquidity |
ConocoPhillips 2022 Q1 10-Q | 46 |
Capital Resources and Liquidity |
Millions of Dollars | ||||||||
Three Months Ended Millions of Dollars | ||||||||
2022 | 2021 | |||||||
Alaska | 253 | 235 | ||||||
Lower 48 | 1,062 | 718 | ||||||
Canada | 122 | 33 | ||||||
Europe, Middle East and North Africa | 172 | 121 | ||||||
Asia Pacific | 1,538 | 76 | ||||||
Other International | — | 6 | ||||||
Corporate and Other | 14 | 11 | ||||||
Capital expenditures and investments | 3,161 | 1,200 |
47 | ConocoPhillips 2022 Q1 10-Q |
Capital Resources and Liquidity |
Millions of Dollars | |||||
Three Months Ended March 31, 2022 | |||||
Revenues and Other Income | $ | 12,910 | |||
Income before income taxes* | 5,355 | ||||
Net Income | 5,759 |
Millions of Dollars | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
Current assets | $ | 9,255 | 7,689 | |||||
Amounts due from Non-Obligated Subsidiaries, current | 2,510 | 1,927 | ||||||
Noncurrent assets | 73,688 | 69,841 | ||||||
Amounts due from Non-Obligated Subsidiaries, noncurrent | 7,600 | 7,281 | ||||||
Current liabilities | 8,759 | 8,005 | ||||||
Amounts due to Non-Obligated Subsidiaries, current | 4,390 | 3,477 | ||||||
Noncurrent liabilities | 31,523 | 30,677 | ||||||
Amounts due to Non-Obligated Subsidiaries, noncurrent | 15,033 | 13,007 |
ConocoPhillips 2022 Q1 10-Q | 48 |
Capital Resources and Liquidity |
49 | ConocoPhillips 2022 Q1 10-Q |
Capital Resources and Liquidity |
ConocoPhillips 2022 Q1 10-Q | 50 |
51 | ConocoPhillips 2022 Q1 10-Q |
ConocoPhillips 2022 Q1 10-Q | 52 |
53 | ConocoPhillips 2022 Q1 10-Q |
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 | ||||||||||
January 1-31, 2022 | 5,203,865 | $ | 81.71 | 5,203,865 | $ | 10,435 | ||||||||
February 1-28, 2022 | 4,946,863 | 90.57 | 4,946,863 | 9,987 | ||||||||||
March 1-31, 2022 | 5,575,384 | 98.91 | 5,575,384 | 9,435 | ||||||||||
15,726,112 | 15,726,112 |
ConocoPhillips 2022 Q1 10-Q | 54 |
31.1* | |||||
101.INS* | Inline XBRL Instance Document. | ||||
101.SCH* | Inline XBRL Schema Document. | ||||
101.CAL* | Inline XBRL Calculation Linkbase Document. | ||||
101.LAB* | Inline XBRL Labels Linkbase Document. | ||||
101.PRE* | Inline XBRL Presentation Linkbase Document. | ||||
101.DEF* | Inline XBRL Definition Linkbase Document. | ||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
55 | ConocoPhillips 2022 Q1 10-Q |
CONOCOPHILLIPS | |||||
/s/ Kontessa S. Haynes-Welsh | |||||
Kontessa S. Haynes-Welsh | |||||
Chief Accounting Officer | |||||
May 5, 2022 |
ConocoPhillips 2022 Q1 10-Q | 56 |