Exhibit 99.2
ConocoPhillips
Houston, Texas 77079
Preliminary
FINANCIAL HIGHLIGHTS
Millions of Dollars
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002** 2003 2002**
Revenues
Sales and other operating revenues* $26,105 14,557 78,366 33,402
Equity in earnings of affiliates 186 89 391 138
Other income 202 85 378 136
-------- -------- -------- --------
26,493 14,731 79,135 33,676
-------- -------- -------- --------
Costs and expenses
Purchased crude oil and products 16,815 9,904 50,848 22,697
Production and operating expenses 1,736 1,203 5,262 3,002
Selling, general and administrative expenses 551 795 1,601 1,266
Exploration expenses 132 85 390 315
Depreciation, depletion and amortization 858 548 2,574 1,339
Property impairments 18 8 192 26
Taxes other than income taxes* 3,807 1,733 10,853 3,624
Accretion on discounted liabilities 39 6 107 17
Interest and debt expense 190 134 647 347
Foreign currency transaction (gains)/losses 34 (6) 14 (11)
Minority interests and preferred dividend
requirements of capital trusts 3 9 16 34
-------- -------- -------- --------
24,183 14,419 72,504 32,656
-------- -------- -------- --------
Income from continuing operations before income
taxes and subsidiary equity transactions 2,310 312 6,631 1,020
Gain on subsidiary equity transactions - - 28 -
-------- -------- -------- --------
Income from continuing operations before income 2,310 312 6,659 1,020
taxes
Provision for income taxes 1,061 386 3,052 880
-------- -------- -------- --------
Income (loss) from continuing operations 1,249 (74) 3,607 140
Income (loss) from discontinued operations, net of
income taxes 57 (42) 201 (7)
-------- -------- -------- --------
Income (loss) before cumulative effect of
changes in accounting principles 1,306 (116) 3,808 133
Cumulative effect of changes in accounting
principles - - (113) -
-------- -------- -------- --------
Net income (Loss) $1,306 (116) 3,695 133
======== ======== ======== ========
Income (loss) per share of common stock
Basic
Continuing operations $1.84 (0.15) 5.30 0.34
Discontinued operations 0.08 (0.09) 0.30 (0.02)
Before cumulative effect of changes in accounting
principles 1.92 (0.24) 5.60 0.32
Cumulative effect of changes in accounting
principles - - (0.17) -
Net income (loss) $1.92 (0.24) 5.43 0.32
Diluted
Continuing operations $1.82 (0.15) 5.28 0.34
Discontinued operations 0.08 (0.09) 0.29 (0.02)
Before cumulative effect of changes in accounting
principles 1.90 (0.24) 5.57 0.32
Cumulative effect of changes in accounting
principles - - (0.17) -
Net income (loss) $1.90 (0.24) 5.40 0.32
Average common shares outstanding (in thousands)
Basic 680,689 480,701 680,089 416,293
Diluted 686,263 484,777 684,248 422,212
*Includes excise taxes on petroleum products sales: $3,580 1,560 10,115 3,143
**Restated for certain discontinued operations.
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ConocoPhillips
Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
Millions of Dollars
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
INCOME/(LOSS) FROM CONTINUING OPERATIONS
BEFORE ACCOUNTING CHANGE
E&P
United States $546 306 1,741 741
International 421 154 1,428 200
-------- ----- -------- -----
Total E&P 967 460 3,169 941
-------- ----- -------- -----
Midstream 31 11 87 35
-------- ----- -------- -----
R&M
United States 416 44 939 25
International 69 13 256 13
-------- ----- -------- -----
Total R&M 485 57 1,195 38
-------- ----- -------- -----
Chemicals 7 3 (4) (1)
Emerging Businesses (18) (262) (75) (270)
Corporate and other (223) (343) (765) (603)
-------- ----- -------- -----
Consolidated $1,249 (74) 3,607 140
======== ===== ======== =====
CUMULATIVE EFFECT OF ACCOUNTING CHANGES
E&P
United States $- - 142 -
International - - (13) -
-------- ----- -------- -----
Total E&P - - 129 -
-------- ----- -------- -----
Midstream - - - -
-------- ----- -------- -----
R&M
United States - - (125) -
International - - - -
-------- ----- -------- -----
Total R&M - - (125) -
-------- ----- -------- -----
Chemicals - - - -
Emerging Businesses - - -
Corporate and other - - (117) -
-------- ----- -------- -----
Consolidated $- - (113) -
======== ===== ======== =====
INCOME (LOSS) FROM DISCONTINUED OPERATIONS
Corporate and other 57 (42) 201 (7)
SUMMARY OF NET INCOME/(LOSS)
E&P
United States $546 306 1,883 741
International 421 154 1,415 200
-------- ----- -------- -----
Total E&P 967 460 3,298 941
-------- ----- -------- -----
Midstream 31 11 87 35
-------- ----- -------- -----
R&M
United States 416 44 814 25
International 69 13 256 13
-------- ----- -------- -----
Total R&M 485 57 1,070 38
-------- ----- -------- -----
Chemicals 7 3 (4) (1)
Emerging Businesses (18) (262) (75) (270)
Corporate and other (166) (385) (681) (610)
-------- ----- -------- -----
Net income/(loss) $1,306 (116) 3,695 133
======== ===== ======== =====
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ConocoPhillips
Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
INCOME/(LOSS) FROM CONTINUING
OPERATIONS
Effective tax rate % 45.9 %123.7 45.8 86.3
Millions of Dollars
FOREIGN CURRENCY GAINS/(LOSSES)
AFTER-TAX
E&P $(12) (6) (28) (11)
Midstream - - - -
R&M (7) 3 4 8
Chemicals - - - -
Emerging Businesses (1) - (1) -
Corporate and other 2 5 21 13
-------- ------ -------- ------
$(18) 2 (4) 10
======== ====== ======== ======
CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) from continuing operations $1,249 (74) 3,607 140
Depreciation, depletion and amortization 858 548 2,574 1,339
Property impairments 18 8 192 26
Dry hole costs and leasehold impairment 75 20 169 161
Accretion on discounted liabilities 39 6 107 17
In-process research and development - 246 - 246
Deferred taxes 36 (20) 289 45
Other (631) (62) (729) 58
Working capital changes 323 1,137 975 836
-------- ------ -------- ------
Net cash provided by continuing operations 1,967 1,809 7,184 2,868
Net cash provided by discontinued operations 74 68 174 118
-------- ------ -------- ------
Net cash provided by operating activities $2,041 1,877 7,358 2,986
======== ====== ======== ======
CAPITAL EXPENDITURES AND INVESTMENTS
E&P
United States $353 233 1,060 756
Foreign 756 482 2,228 1,177
-------- ------ -------- ------
1,109 715 3,288 1,933
Midstream 2 1 6 2
R&M 298 192 740 425
Chemicals - 10 - 29
Emerging Businesses 60 35 224 35
Corporate and other* 51 7 127 55
-------- ------ -------- ------
$1,520 960 4,385 2,479
======== ====== ======== ======
*Excludes discontinued operations
OTHER
At September At December 31,
30, 2003 2002
Total debt $18,887 19,766
Common stockholders' equity $32,965 29,517
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ConocoPhillips
Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
BY SEGMENT
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
Thousands of Barrels Daily
E&P
Crude oil produced
United States
Alaska 314 310 327 334
Lower 48 51 38 56 34
---------- ----------- ----------- ----------
365 348 383 368
Norway 207 156 215 131
United Kingdom 67 35 79 24
Canada 29 14 31 5
Nigeria 36 29 38 26
China 25 12 25 12
Indonesia 16 6 18 2
Other 48 20 52 9
---------- ----------- ----------- ----------
Total consolidated 793 620 841 577
Equity affiliates 120 44 97 18
---------- ----------- ----------- ----------
Total Worldwide 913 664 938 595
========== =========== =========== ==========
Syncrude 22 8 19 3
========== =========== =========== ==========
Natural gas liquids produced
United States
Alaska* 19 21 22 24
Lower 48 20 9 20 4
---------- ----------- ----------- ----------
39 30 42 28
Norway 7 6 8 5
Canada 9 3 10 1
Other 2 4 4 4
---------- ----------- ----------- ----------
Total Worldwide 57 43 64 38
========== =========== =========== ==========
*Includes reinjected volumes sold lease-to-
lease. 13 13 14 14
Millions of Cubic Feet Daily
Natural gas produced*
United States
Alaska 180 183 177 171
Lower 48 1,271 922 1,306 782
---------- ----------- ----------- ----------
1,451 1,105 1,483 953
Norway 216 183 265 150
United Kingdom 853 349 935 238
Canada 448 172 436 72
Indonesia 275 68 248 23
Other 130 105 120 106
---------- ----------- ----------- ----------
Total consolidated 3,373 1,982 3,487 1,542
Equity affiliates 11 4 11 1
---------- ----------- ----------- ----------
Total Worldwide 3,384 1,986 3,498 1,543
========== =========== =========== ==========
*Represents quantities available for sale. Excludes gas equivalent of NGL shown
above.
Liquefied natural gas sales 121 128 114 120
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ConocoPhillips
Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
E&P (continued)
Per Unit
Average sales prices
Crude oil (per barrel)
United States
Alaska $28.31 25.83 28.99 22.92
Lower 48 27.94 26.87 28.98 23.61
Total U.S. 28.26 25.94 28.99 22.98
International 28.05 27.00 28.22 24.55
Total consolidated 28.15 26.38 28.57 23.54
Equity affiliates 19.90 20.29 18.84 19.88
Total Worldwide 27.00 25.97 27.55 23.43
Natural gas-lease (per MCF)
United States
Alaska 1.33 1.58 1.71 1.81
Lower 48 4.56 2.65 4.92 2.42
Total U.S. 4.41 2.60 4.78 2.39
International 3.38 2.37 3.59 2.34
Total consolidated 3.80 2.49 4.07 2.37
Equity affiliates 4.12 1.78 4.61 1.78
Total Worldwide 3.80 2.49 4.08 2.37
Midstream
Thousands of Barrels Daily
Natural gas liquids extracted
Consolidated
United States 50 19 51 7
International 47 15 44 5
Equity affiliates
United States* 111 119 111 118
International 12 3 11 1
---------- ----------- ---------- -----------
220 156 217 131
========== =========== ========== ===========
*Represents 30.3 percent interest in Duke Energy Field Services, LLC
(DEFS)
Per Barrel
U.S. product prices
Weighted average NGL**
Consolidated $20.94 18.57 22.51 18.57
DEFS 20.67 16.32 21.91 14.91
**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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Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
Thousands of Barrels Daily
R&M
United States
Crude oil capacity 2,168 1,825 2,168 1,710
Crude oil runs 2,083 1,643 2,073 1,546
Refinery production 2,322 1,795 2,311 1,702
International*
Crude oil capacity 442 192 442 112
Crude oil runs 387 168 387 100
Refinery production 413 178 419 101
U.S. Petroleum products outside sales
Automotive gasoline 1,398 1,195 1,370 1,146
Distillates 580 449 590 437
Aviation fuels 197 219 176 189
Other products 497 350 499 363
---------- ----------- ---------- --------------------
2,672 2,213 2,635 2,135
International 441 201 439 102
---------- ----------- ---------- --------------------
3,113 2,414 3,074 2,237
========== =========== ========== ====================
Per Gallon
U.S. Average sales prices**
Automotive gasoline-wholesale $1.09 0.93 1.07 0.86
Automotive gasoline-retail 1.42 1.02 1.38 0.95
Distillates-wholesale 0.88 0.81 0.93 0.73
*Includes ConocoPhillips' share of equity affiliates.
**Excludes excise taxes.
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