Exhibit 99.2
FINANCIAL HIGHLIGHTS
Millions of Dollars
Three Months Ended
March 31
2003 2002**
Revenues
Sales and other operating revenues* $26,942 8,431
Equity in earnings of affiliates 49 20
Other income 86 29
---------- ----------
27,077 8,480
---------- ----------
Costs and expenses
Purchased crude oil and products 17,685 5,639
Production and operating expenses 1,650 917
Selling, general and administrative
expenses 509 264
Exploration expenses 116 163
Depreciation, depletion and amortization 863 396
Impairments 14 10
Taxes other than income taxes* 3,422 914
Accretion on discounted liabilities 33 5
Interest and debt expense 209 107
Foreign currency transaction losses
(gains) (3) 1
Preferred dividend requirements of capital trusts and minority
interests 14 13
---------- ----------
24,512 8,429
---------- ----------
Income from continuing operations before income
taxes 2,565 51
Provision for income taxes 1,295 149
---------- ----------
Income from continuing operations 1,270 (98)
Income/(loss) from discontinued operations, net of income taxes 22 (4)
---------- ----------
Income/(loss) before cumulative effect of change in accounting
principle 1,292 (102)
Cumulative effect of change in accounting pinciple 145 -
---------- ----------
Net income/(loss) $1,437 (102)
========== ==========
Net income/(loss) per share of common stock
Basic
Continuing operations $1.87 (0.26)
Discontinued operations 0.03 (0.01)
Before cumulative effect of change in accounting principle 1.90 (0.27)
Cumulative effect of change in accounting principle 0.21 -
Net income/(loss) $2.11 (0.27)
Diluted
Continuing operations $1.86 (0.26)
Discontinued operations 0.03 (0.01)
Before cumulative effect of change in accounting principle 1.89 (0.27)
Cumulative effect of change in accounting principle 0.21 -
Net income/(loss) $2.10 (0.27)
Average common shares outstanding (in thousands)
Basic 679,538 382,337
Diluted 682,744 382,337
*Includes excise taxes on petroleum products sales 3,148 764
**Restated for discontinued operations.
SELECTED FINANCIAL DATA
Millions of Dollars
Three Months Ended
March 31
2003 2002
Income/(Loss) from continuing operations before accounting change
E&P
United States $676 155
International 461 (13)
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Total E&P 1,137 142
---------- ----------
Midstream 31 12
---------- ----------
R&M
United States 257 (92)
International 114 5
---------- ----------
Total R&M 371 (87)
---------- ----------
Chemicals (23) (11)
Emerging Businesses (34) (5)
Corporate and other (212) (149)
---------- ----------
Consolidated $1,270 (98)
========== ==========
Cumulative Effect of Accounting Change
E&P
United States $161 -
International (15) -
---------- ----------
Total E&P 146 -
---------- ----------
Midstream - -
---------- ----------
R&M
United States (1) -
International - -
---------- ----------
Total R&M (1) -
---------- ----------
Chemicals - -
Emerging Businesses - -
Corporate and other - -
---------- ----------
Consolidated $145 -
========== ==========
Income/(Loss) from Discontinued Operations
Corporate and other 22 (4)
SUMMARY OF NET INCOME/(LOSS)
E&P
United States $837 155
International 446 (13)
---------- ----------
Total E&P 1,283 142
---------- ----------
Midstream 31 12
---------- ----------
R&M
United States 256 (92)
International 114 5
---------- ----------
Total R&M 370 (87)
---------- ----------
Chemicals (23) (11)
Emerging Businesses (34) (5)
Corporate and other (190) (153)
---------- ----------
Net Income/(loss) $1,437 (102)
========== ==========
SELECTED FINANCIAL DATA
Three Months Ended
March 31
2003 2002
INCOME/(LOSS) FROM CONTINUING OPERATIONS
Effective tax rate % 50.5 % 292.2
Millions of Dollars
FOREIGN CURRENY GAINS/(LOSSES) AFTER-TAX
E&P $10 2
Midstream - -
R&M 1 3
Chemicals - -
Emerging Businesses (1) -
Corporate and other 1 (4)
---------- ----------
$11 1
========== ==========
CASH FLOWS FROM OPERATING ACTIVITIES
Income from continuing operations $1,270 (98)
Depreciation, depletion and amortization 863 396
Impairments 14 10
Dry hole costs and leasehold impairment 40 109
Accretion on discounted liabilities 33 5
Deferred taxes 236 (81)
Cumulative effect of change in accounting principle - -
Other 67 147
Working capital changes 712 84
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Net cash provided by continuing operations 3,235 572
Net cash provided by discontinued operations (56) 7
---------- ----------
Net cash provided by operating activities $3,179 579
========== ==========
CAPITAL EXPENDITURES AND INVESTMENTS
E&P
United States $326 269
Foreign 686 248
---------- ----------
1,012 517
Midstream 2 -
R&M 203 104
Chemicals - 10
Emerging Businesses 66 -
Corporate and other 26 14
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$1,309 645
========== ==========
OTHER
At March 31, 2003 At December 31, 2002
Total debt $18,240 19,766
Common stockholders' equity $30,925 29,517
OPERATING HIGHLIGHTS
BY SEGMENT
Three Months Ended
March 31
2003 2002
Thousands of Barrels Daily
E&P
Crude oil produced
United States
Alaska 337 353
Lower 48 60 33
------------ ------------
397 386
Norway 226 118
United Kingdom 87 17
Canada 33 1
Nigeria 38 27
China 23 13
Other 76 4
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Total consolidated 880 566
Equity affiliates 55 5
------------ ------------
Total Worldwide 935 571
============ ============
Syncrude 17 -
============ ============
Natural gas liquids produced
United States
Alaska* 25 27
Lower 48 19 1
------------ ------------
44 28
Norway 8 5
Canada 11 -
Other 4 4
------------ ------------
Total Worldwide 67 37
============ ============
*Includes reinjected volumes sold lease-to-lease. 15 15
Millions of Cubic Feet Daily
Natural gas produced*
United States
Alaska 189 168
Lower 48 1,338 734
------------ ------------
1,527 902
Norway 305 135
United Kingdom 1,002 173
Canada 436 19
Indonesia 224 -
Other 111 120
------------ ------------
Total consolidated 3,605 1,349
Equity affiliates 12 -
------------ ------------
Total Worldwide 3,617 1,349
============ ============
*Represents quantities available for sale.
Excludes gas equivalent of NGL shown above.
Liquefied natural gas sales 130 117
OPERATING HIGHLIGHTS
Three Months Ended
March 31
2003 2002
E&P (continued)
Per Unit
Average sales prices
Crude oil (per barrel)
United States
Alaska $31.47 18.72
Lower 48 31.48 18.86
Total U.S. 31.47 18.73
International 31.09 20.86
Total consolidated 31.26 19.41
Equity affiliates 20.97 15.86
Worldwide 30.72 19.37
Natural gas-lease (per MCF)
United States
Alaska 1.97 2.13
Lower 48 5.47 1.99
Total U.S. 5.34 1.99
International 3.92 2.41
Total consolidated 4.49 2.15
Equity affiliates 4.82 -
Total Worldwide 4.49 2.15
Midstream*
Thousands of Barrels Daily
Natural gas liquids extracted
Consolidated
United States 51 -
International 47 -
Equity affiliates
United States* 114 118
International 10 -
------------ -----------
222 118
============ ===========
*Represents 30.3 percent interest in Duke Energy Field Services LLC (DEFS).
Per Barrel
U.S. product prices
Weighted average NGL**
Consolidated $25.59 -
DEFS 24.53 12.83
*Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted
by DEFS' naural-gas-liquids component and location mix.
Three Months Ended
March 31
2003 2002
Thousands of Barrels Daily
RM&T
United States
Crude oil capacity 2,167 1,642
Crude oil runs 2,008 1,416
Refinery production 2,254 1,575
International*
Crude oil capacity 442 72
Crude oil runs 396 65
Refinery production 436 62
U.S. Petroleum products outside sales
Gasoline 1,331 1,084
Distillates 600 439
Aviation fuels 164 162
Other products 500 398
--------------- ---------------
2,595 2,083
--------------- ---------------
International 428 54
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3,023 2,137
=============== ===============
Per Gallon
U.S. Average sales prices**
Automotive gasoline-wholesale $1.10 0.67
Automotive gasoline-retail 1.37 0.81
Distillates-wholesale 1.05 0.59
Millions of Pounds
CHEMICALS***
Production
Ethylene 731 805
Polyethylene 475 525
Styrene 274 203
Normal alpha olefins 146 158
*Includes ConocoPhillps' share of equity
affiliates.
**Excludes excise taxes.
***ConocoPhillips' Chemicals segment consists primarily of its 50 percent equity
investment in Chevron Phillips Chemical Company LLC.