Exhibit 99.2
ConocoPhillips
Houston, Texas 77079
FINANCIAL HIGHLIGHTS
Millions of Dollars
Three Months Ended Six Months Ended
June 30 June 30
2003 2002** 2003 2002**
Revenues
Sales and other operating revenues* $25,347 10,414 52,289 18,845
Equity in earnings of affiliates 156 29 205 49
Other income 92 22 178 51
---------- --------- --------- -----------
25,595 10,465 52,672 18,945
---------- --------- --------- -----------
Costs and expenses
Purchased crude oil and products 16,377 7,154 34,063 12,793
Production and operating expenses 1,847 882 3,496 1,799
Selling, general and administrative
expenses 675 207 1,184 471
Exploration expenses 142 67 258 230
Depreciation, depletion and amortization 847 395 1,696 791
Property impairments 146 8 174 18
Taxes other than income taxes* 3,624 977 7,046 1,891
Accretion on discounted contingent
liabilities 35 6 68 11
Interest and debt expense 184 106 393 213
Foreign currency transaction gains (20) (6) (23) (5)
Preferred dividend requirements of
capital trusts
and minority interests 13 12 27 25
---------- --------- --------- -----------
23,870 9,808 48,382 18,237
---------- --------- --------- -----------
Income from continuing operations before income
taxes and subsidiary equity
transactions 1,725 657 4,290 708
Gain on subsidiary equity transactions 28 - 28 -
---------- --------- --------- -----------
Income from continuing operations before
income 1,753 657 4,318 708
taxes
Provision for income taxes 674 345 1,969 494
---------- --------- --------- -----------
Income from continuing operations 1,079 312 2,349 214
Income from discontinued operations, net
of
income taxes 59 39 81 35
---------- --------- --------- -----------
Income before cumulative effect of change
in
accounting principle 1,138 351 2,430 249
Cumulative effect of change in accounting
principle - - 145 -
---------- --------- --------- -----------
Net income $1,138 351 2,575 249
========== ========= ========= ===========
Income per share of common stock
Basic
Continuing operations $1.59 0.81 3.46 0.56
Discontinued operations 0.08 0.10 0.12 0.09
Before cumulative effect of change in accounting
principle 1.67 0.91 3.58 0.65
Cumulative effect of change in
accounting principle - - 0.21 -
Net income $1.67 0.91 3.79 0.65
Diluted
Continuing operations $1.58 0.81 3.44 0.55
Discontinued operations 0.08 0.10 0.12 0.10
Before cumulative effect of change in accounting
principle 1.66 0.91 3.56 0.65
Cumulative effect of change in
accounting principle - - 0.21 -
Net income $1.66 0.91 3.77 0.65
Average common shares outstanding (in thousands)
Basic 680,028 383,913 679,784 383,130
Diluted 684,188 386,711 683,867 385,927
*Includes excise taxes on petroleum
products sales: $3,387 819 6,535 1,583
**Restated for discontinued operations.
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ConocoPhillips
Houston, Texas 77079
SELECTED FINANCIAL DATA
Millions of Dollars
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
INCOME/(LOSS) FROM CONTINUING OPERATIONS
BEFORE ACCOUNTING CHANGE
E&P
United States $516 280 1,192 435
International 554 59 1,015 46
---------- ----------- ---------- -----------
Total E&P 1,070 339 2,207 481
---------- ----------- ---------- -----------
Midstream 25 12 56 24
---------- ----------- ---------- -----------
R&M
United States 227 73 484 (19)
International 74 (5) 188 -
---------- ----------- ---------- -----------
Total R&M 301 68 672 (19)
---------- ----------- ---------- -----------
Chemicals 12 7 (11) (4)
Emerging Businesses (23) (3) (57) (8)
Corporate and other (306) (111) (518) (260)
---------- ----------- ---------- -----------
Consolidated $1,079 312 2,349 214
========== =========== ========== ===========
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 FROM DISCONTINUED OPERATIONS
Corporate and other 59 39 81 35
SUMMARY OF NET INCOME/(LOSS)
E&P
United States $516 280 1,353 435
International 554 59 1,000 46
---------- ----------- ---------- -----------
Total E&P 1,070 339 2,353 481
---------- ----------- ---------- -----------
Midstream 25 12 56 24
---------- ----------- ---------- -----------
R&M
United States 227 73 483 (19)
International 74 (5) 188 -
---------- ----------- ---------- -----------
Total R&M 301 68 671 (19)
---------- ----------- ---------- -----------
Chemicals 12 7 (11) (4)
Emerging Businesses (23) (3) (57) (8)
Corporate and other (247) (72) (437) (225)
---------- ----------- ---------- -----------
Net income/(loss) $1,138 351 2,575 249
========== =========== ========== ===========
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ConocoPhillips
Houston, Texas 77079
SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
INCOME/(LOSS) FROM CONTINUING
OPERATIONS
Effective tax rate % 38.4 % 52.5 45.6 69.8
Millions of Dollars
FOREIGN CURRENCY GAINS/(LOSSES)
AFTER-TAX
E&P $(24) (7) (14) (5)
Midstream - - - -
R&M 10 2 11 5
Chemicals - - - -
Emerging Businesses 1 - - -
Corporate and other 18 12 19 8
---------- ----------- ---------- -----------
$5 7 16 8
========== =========== ========== ===========
CASH FLOWS FROM OPERATING ACTIVITIES
Income from continuing operations $1,079 312 2,349 214
Depreciation, depletion and amortization 847 395 1,696 791
Property impairments 146 8 174 18
Dry hole costs and leasehold impairment 54 32 94 141
Accretion on discounted liabilities 35 6 68 11
Deferred taxes (1) 146 235 65
Other (149) (27) (82) 120
Working capital changes 91 (385) 803 (301)
---------- ----------- ---------- -----------
Net cash provided by continuing
operations 2,102 487 5,337 1,059
Net cash provided by discontinued
operations 158 43 102 50
---------- ----------- ---------- -----------
Net cash provided by operating
activities $2,260 530 5,439 1,109
========== =========== ========== ===========
CAPITAL EXPENDITURES AND INVESTMENTS
E&P
United States $381 257 707 526
Foreign 786 444 1,472 692
---------- ----------- ---------- -----------
1,167 701 2,179 1,218
Midstream 2 - 4 -
R&M 257 130 460 234
Chemicals - 9 - 19
Emerging Businesses 98 - 164 -
Corporate and other 50 34 76 48
---------- ----------- ---------- -----------
$1,574 874 2,883 1,519
========== =========== ========== ===========
OTHER
At June 30, 2003 At December 31, 2002
Total debt $17,569 19,766
Common stockholders' equity $32,032 29,517
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ConocoPhillips
Houston, Texas 77079
OPERATING HIGHLIGHTS
BY SEGMENT
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
Thousands of Barrels Daily
E&P
Crude oil produced
United States
Alaska 331 339 334 346
Lower 48 57 31 58 32
---------- ----------- ----------- ----------
388 370 392 378
Norway 214 119 220 118
United Kingdom 82 18 85 18
Canada 31 1 32 1
Nigeria 39 23 38 25
China 27 11 25 12
Indonesia 17 - 19 -
Other 52 4 54 4
---------- ----------- ----------- ----------
Total consolidated 850 546 865 556
Equity affiliates 117 4 86 5
---------- ----------- ----------- ----------
Total Worldwide 967 550 951 561
========== =========== =========== ==========
Syncrude 19 - 18 -
========== =========== =========== ==========
Natural gas liquids produced
United States
Alaska* 23 25 24 26
Lower 48 21 1 20 1
---------- ----------- ----------- ----------
44 26 44 27
Norway 7 4 8 5
Canada 11 - 11 -
Other 5 4 4 3
---------- ----------- ----------- ----------
Total Worldwide 67 34 67 35
========== =========== =========== ==========
*Includes reinjected volumes sold lease-to-
lease. 14 14 14 15
Millions of Cubic Feet Daily
Natural gas produced*
United States
Alaska 162 160 175 164
Lower 48 1,311 689 1,324 711
---------- ----------- ----------- ----------
1,473 849 1,499 875
Norway 273 131 289 133
United Kingdom 952 189 977 181
Canada 424 22 430 21
Indonesia 246 - 235 -
Other 117 95 115 107
---------- ----------- ----------- ----------
Total consolidated 3,485 1,286 3,545 1,317
Equity affiliates 11 - 11 -
---------- ----------- ----------- ----------
Total Worldwide 3,496 1,286 3,556 1,317
========== =========== =========== ==========
*Represents quantities available for sale. Excludes gas equivalent of NGL
shown above.
Liquefied natural gas sales 91 114 111 116
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ConocoPhillips
Houston, Texas 77079
OPERATING HIGHLIGHTS
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
E&P (continued)
Per Unit
Average sales prices
Crude oil (per barrel)
United States
Alaska $27.19 24.40 29.32 21.55
Lower 48 27.34 24.53 29.44 21.64
Total U.S. 27.21 24.41 29.34 21.55
International 25.62 24.58 28.30 22.74
Total consolidated 26.33 24.46 28.76 21.93
Equity affiliates 16.85 21.06 18.02 17.91
Total Worldwide 25.19 24.44 27.82 21.90
Natural gas-lease (per MCF)
United States
Alaska 1.88 1.80 1.92 1.94
Lower 48 4.72 2.56 5.10 2.26
Total U.S. 4.58 2.51 4.96 2.25
International 3.47 2.20 3.70 2.31
Total consolidated 3.92 2.40 4.21 2.27
Equity affiliates 4.89 - 4.85 -
Total Worldwide 3.93 2.40 4.21 2.27
Midstream*
Thousands of Barrels Daily
Natural gas liquids extracted
Consolidated
United States 53 - 52 -
International 35 - 41 -
Equity affiliates
United States* 110 119 112 118
International 11 - 11 -
---------- ----------- ---------- -----------
209 119 216 118
========== =========== ========== ===========
*Represents 30.3 percent interest in Duke Energy Field Services LLC
(DEFS)
Per Barrel
U.S. product prices
Weighted average NGL**
Consolidated $20.99 - 23.29 -
DEFS 20.53 15.59 22.53 14.21
* Prices are based on index prices from the Mont Belvieu and Conway market
hubs that are weighted by natural-gas-liquids component and location mix.
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ConocoPhillips
Houston, Texas 77079
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
Thousands of Barrels Daily
R&M
United States
Crude oil capacity 2,168 1,660 2,168 1,651
Crude oil runs 2,128 1,576 2,068 1,496
Refinery production 2,357 1,732 2,305 1,654
International*
Crude oil capacity 442 72 442 72
Crude oil runs 376 67 386 66
Refinery production 407 63 421 63
U.S. Petroleum products outside sales
Gasoline 1,381 1,159 1,356 1,122
Distillates 590 424 595 432
Aviation fuels 164 185 164 174
Other products 493 341 501 368
---------- ----------- ---------- --------------------
2,628 2,109 2,616 2,096
International 448 50 438 52
---------- ----------- ---------- --------------------
3,076 2,159 3,054 2,148
========== =========== ========== ====================
Per Gallon
U.S. Average sales prices**
Automotive gasoline-wholesale $1.02 0.87 1.06 0.77
Automotive gasoline-retail 1.34 1.00 1.35 0.91
Distillates-wholesale 0.85 0.69 0.95 0.64
* Includes ConocoPhillips' share of equity affiliates.
** Excludes excise taxes.
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