EXHIBIT 99.1
UNAUDITED PRO FORMA QUARTERLY FINANCIAL DATA
AND UNAUDITED QUARTERLY CAPITAL EXPENDITURE AND OPERATING DATA
Conoco Inc. (Conoco) is hereby furnishing unaudited quarterly pro forma
financial data for the year ended December 31, 2000, and the six-month period
ended June 30, 2001 for Conoco and Gulf Canada Resources Limited (which was
renamed Conoco Canada Resources Limited and is referred to herein as Conoco
Canada). Conoco is also furnishing unaudited quarterly capital expenditure and
operating data for the year ended December 31, 2000, and the six-month period
ended June 30, 2001 for Conoco Canada. The unaudited quarterly pro forma
financial data for Conoco and Conoco Canada (including purchase price
adjustments) have been prepared to illustrate the estimated effect of the
acquisition of Conoco Canada on Conoco under the purchase method of accounting
and have been prepared as if the acquisition of Conoco Canada by Conoco had
occurred on January 1, 2000. The unaudited quarterly pro forma financial data
for the year ended December 31, 2000, also gives effect to the acquisition (that
closed effective November 6, 2000) of Crestar Energy, Inc. (Crestar) by Conoco
Canada as if the acquisition had occurred on January 1, 2000.
The unaudited quarterly pro forma financial data has been derived from the
historical and pro forma financial statements of Conoco and Conoco Canada
previously filed with the Securities and Exchange Commission (SEC). The
unaudited quarterly capital expenditure and operating data has been derived from
the historical and pro forma financial statements of Conoco Canada previously
filed with the SEC and from internal accounting records of Conoco Canada and
Crestar. The unaudited quarterly pro forma financial data and unaudited
quarterly capital expenditure and operating data should be read in conjunction
with the historical financial statements of Conoco, including the notes thereto,
and Conoco's Current Report on Form 8-K dated July 16, 2001, as amended by Form
8-K/A filed on September 10, 2001, previously filed with the SEC.
The unaudited quarterly pro forma financial data do not purport to
represent what the results of operations of Conoco or Conoco Canada would
actually have been if the acquisition had in fact occurred on such dates or to
project the results of operations or financial position of Conoco for any future
date or period. Additionally, the unaudited quarterly pro forma financial data
excludes nonrecurring charges made in the third quarter of 2001 resulting from
the consummation of the transaction. The pro forma adjustments are based upon
currently available information and contain certain estimates and assumptions.
1
CONOCO CANADA
PRO FORMA QUARTERLY FINANCIAL DATA*
(UNAUDITED)
<Table>
<Caption>
2000 2001
---------------------------------------------------- ---------------------------
FULL SIX
1Q 2Q 3Q 4Q YEAR 1Q 2Q MONTHS
------- ------- ------- ------- ------- ------- ------- ------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE DATA)
Revenues
Sales and other operating revenues .. $ 410 $ 470 $ 523 $ 534 $ 1,937 $ 644 $ 532 $ 1,176
Equity in earnings of affiliates .... 10 11 (19) (27) (25) (1) (2) (3)
Other income ........................ (5) (13) 29 55 66 (56) 80 24
------- ------- ------- ------- ------- ------- ------- -------
Total revenues .................... 415 468 533 562 1,978 587 610 1,197
------- ------- ------- ------- ------- ------- ------- -------
Costs and expenses
Cost of goods sold .................. 80 85 85 96 346 149 112 261
Operating expenses .................. 97 101 98 113 409 115 120 235
Selling, general and administrative . 14 16 13 12 55 12 24 36
Exploration expenses ................ 24 10 39 15 88 35 24 59
Depreciation, depletion and
amortization ....................... 140 143 144 124 551 128 116 244
Taxes other than on income .......... 1 2 1 1 5 (1) 6 5
Interest and debt expense ........... 96 105 107 130 438 90 88 178
------- ------- ------- ------- ------- ------- ------- -------
Total costs and expenses .......... 452 462 487 491 1,892 528 490 1,018
------- ------- ------- ------- ------- ------- ------- -------
Income before income taxes and
accounting change .................. (37) 6 46 71 86 59 120 179
Provision for income taxes ............ (5) 14 27 62 98 30 34 64
------- ------- ------- ------- ------- ------- ------- -------
Income before accounting change ....... $ (32) $ (8) $ 19 $ 9 $ (12) $ 29 $ 86 $ 115
======= ======= ======= ======= ======= ======= ======= =======
Diluted earnings per share effect to
Conoco shares..................... $( .05) $( .01) $ .03 $ .01 $( .02) $ .05 $ .14 $ .18
======= ======= ======= ======= ======= ======= ======= =======
</Table>
--------------
* The unaudited pro forma financial data for Conoco Canada (formerly known as
Gulf Canada) has been prepared to illustrate the estimated incremental
effect of the acquisition of Conoco Canada on Conoco, including the impact
of higher interest charges from debt incurred to fund the acquisition. The
Conoco Canada information has been converted to U.S. GAAP, conformed to
Conoco's presentation and converted to U.S. dollars using the average rates
for the six-month period ended June 30, 2001 of .65 and for the year ended
December 31, 2000 of .67.
2
CONOCO
PRO FORMA QUARTERLY FINANCIAL DATA*
(UNAUDITED)
<Table>
<Caption>
2000 2001
---------------------------------------------------- ---------------------------
FULL SIX
1Q 2Q 3Q 4Q YEAR 1Q 2Q MONTHS
------- ------- ------- ------- ------- ------- ------- ------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE DATA)
Revenues
Sales and other operating revenues .. $ 8,934 $ 9,821 $11,110 $10,809 $40,674 $11,179 $10,792 $21,971
Equity in earnings of affiliates .... 90 88 68 6 252 20 57 77
Other income ........................ 82 59 52 146 339 (25) 194 169
------- ------- ------- ------- ------- ------- ------- -------
Total revenues .................... 9,106 9,968 11,230 10,961 41,265 11,174 11,043 22,217
------- ------- ------- ------- ------- ------- ------- -------
Costs and expenses
Cost of goods sold .................. 5,204 5,843 6,852 6,368 24,267 6,678 6,339 13,017
Operating expenses .................. 603 648 618 755 2,624 730 819 1,549
Selling, general and administrative . 202 216 212 219 849 207 233 440
Exploration expenses ................ 61 68 120 118 367 72 80 152
Depreciation, depletion and
amortization ....................... 479 452 449 472 1,852 481 454 935
Taxes other than on income .......... 1,703 1,780 1,783 1,720 6,986 1,643 1,736 3,379
Interest and debt expense ........... 179 194 185 218 776 165 155 320
------- ------- ------- ------- ------- ------- ------- -------
Total costs and expenses .......... 8,431 9,201 10,219 9,870 37,721 9,976 9,816 19,792
------- ------- ------- ------- ------- ------- ------- -------
Income before income taxes and
accounting change .................. 675 767 1,011 1,091 3,544 1,198 1,227 2,425
Provision for income taxes ............ 308 332 495 519 1,654 559 583 1,142
------- ------- ------- ------- ------- ------- ------- -------
Income before accounting change ....... $ 367 $ 435 $ 516 $ 572 $ 1,890 $ 639 $ 644 $ 1,283
======= ======= ======= ======= ======= ======= ======= =======
Diluted earnings per share before
accounting change .................. $ .58 $ .69 $ .82 $ .90 $ 2.99 $ 1.01 $ 1.01 $ 2.02
</Table>
-------------
* The above unaudited pro forma financial data has been prepared to illustrate
the approximate effect of effect of Conoco Canada (formerly known as Gulf
Canada) on Conoco under the purchase method of accounting. This financial
information does not purport to represent what the results of operations or
financial position of Conoco would actually have been if the acquisition had
in fact occurred on such dates or project the results of operations or
financial position of Conoco of any future date or period.
3
CONOCO CANADA
QUARTERLY CAPITAL EXPENDITURE DATA
(UNAUDITED)
<Table>
<Caption>
2000 2001
--------------------------------------------------- ---------------------------
FULL SIX
1Q 2Q 3Q 4Q YEAR 1Q 2Q MONTHS
------ ------ ------ ------ ------ ------ ------ ------
(IN MILLIONS OF U.S. DOLLARS)
Conoco Canada ......................... $ 84 $ 80 $ 72 $ 109 $ 345 $ 142 $ 114 $ 256
Crestar ............................... 64 161 73 24 322 -- -- --
------ ------ ------ ------ ------ ------ ------ ------
Total capital expenditures ............ $ 148 $ 241 $ 145 $ 133 $ 667 $ 142 $ 114 $ 256
====== ====== ====== ====== ====== ====== ====== ======
</Table>
Conoco Canada's (formerly known as Gulf Canada) capital expenditures are
derived from its historical financial statements. Crestar's capital spending is
derived from Crestar's historical data and includes development, exploration
spending and acquisitions, but excludes capital costs for geological and
geophysical data (G&G), to give effect to the fact that Conoco accounts for its
oil and gas operations under the successful efforts method of accounting, which
generally expenses G&G costs. Crestar data for the period of January 1, 2000
through October 31, 2000 is included in the above table as Conoco Canada
purchased Crestar effective November 6, 2000. Second quarter 2000 includes the
acquisition of CMS Oil and Gas Ecuador LDC by Crestar. Capital expenditures were
converted to U.S. dollars using the average rates for the six-month period ended
June 30, 2001 of .65 and for the year ended December 31, 2000 of .67. This
financial information does not purport what the capital expenditures of Conoco
would actually have been if the acquisition had in fact occurred on such dates
or project the results of capital expenditures of Conoco for any future date or
period.
4
CONOCO CANADA
QUARTERLY OPERATING DATA
(UNAUDITED)
NET SALES VOLUMES PER DAY*
<Table>
<Caption>
2000 2001
--------------------------------------------------- ---------------------------
FULL SIX
1Q 2Q 3Q 4Q YEAR 1Q 2Q MONTHS
------ ------ ------ ------ --------- ------ ------ ------
CONOCO CANADA VOLUMES
Gas (mmcf) ............................ 443 444 433 551 451 633 615 624
Oil (mbls) ............................ 48.4 50.9 50.5 70.9 55.3 93.3 79.1 81.1
NGLs and condensate (mbls) ............ 7.7 6.4 6.7 9.8 8.8 16.2 13.7 13.1
Conoco Canada sub-total (mboe) ..... 129.9 131.3 129.4 172.5 139.3 215.0 195.3 198.2
CRESTAR VOLUMES**
Gas (mmcf) ............................ 267 262 255 80 216 -- -- --
Oil and NGLs (mbls) ................... 35.9 35.9 39.9 12.9 31.1 -- -- --
Crestar sub-total (mboe) ........... 80.4 79.6 82.4 26.2 67.1 -- -- --
------ ------ ------ ------ ------ ------ ------ ------
Total (mboe) .......................... 210.3 210.9 211.8 198.7 206.4 215.0 195.3 198.2
Syncrude (mboe) ....................... 14.1 18.1 14.6 15.3 15.5 18.4 16.8 17.6
------ ------ ------ ------ ------ ------ ------ ------
Total (mboe) .......................... 224.4 229.0 226.4 214.0 221.9 233.4 212.1 215.8
====== ====== ====== ====== ====== ====== ====== ======
------------------
* Natural gas volumes were converted using a six thousand cubic feet to one
barrel rate.
Millions of cubic feet (mmcf)
Thousands of barrels (mbls)
Thousands of barrels of oil equivalent (mboe)
** Estimated volume effect of the Crestar acquisition by Conoco Canada
(formerly known as Gulf Canada) for the first ten months of 2000. Conoco
Canada purchased Crestar effective November 6, 2000. Fourth quarter Crestar
sales volumes include only October sales. Crestar November and December
sales volume are included in Conoco Canada's operating data. Crestar's net
of royalty sales volumes were derived from their gross sales volumes using
an average royalty rate of approximately 20 percent.
AVERAGE GROSS PRICES IN U.S. DOLLARS (EXCLUDES CRESTAR)*
<Table>
<Caption>
2000 2001
--------------------------------------------------- ---------------------------
FULL SIX
1Q 2Q 3Q 4Q YEAR 1Q 2Q MONTHS
------ ------ ------ ------ --------- ------ ------ ------
(IN MILLIONS OF U.S. DOLLARS)
Gas (excluding hedges) ................ $ 2.45 $ 3.02 $ 3.51 $ 4.64 $ 3.51 $ 5.47 $ 3.87 $ 4.67
Oil (excluding hedges) ................ 24.89 24.85 28.63 22.40 24.96 19.17 19.78 19.48
NGLs .................................. 18.50 18.38 22.26 29.57 22.55 28.28 22.49 25.22
Syncrude .............................. 28.06 28.78 30.83 31.41 29.79 27.63 28.19 27.91
</Table>
------------------
* Prices shown are as reported in Conoco Canada's (formerly known as
Gulf Canada) historical financial statements (Canadian GAAP) and
converted to U.S. dollars using the average quarterly exchange rate
for each individual quarter.
5