Exhibit 99.3
CONOCOPHILLIPS
SUMMARY OF NET INCOME (LOSS) BY SEGMENT
Millions of Dollars
------------------------------------------------------------------------------------
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
- ---------------------------------------------------------------------------- ----------------------------------------
Income (Loss) from Continuing Operations
Before Accounting Changes
U.S. E&P 678 517 546 491 2,232 635 671 701 2,007
International E&P 447 560 421 500 1,928 622 683 719 2,024
- ---------------------------------------------------------------------------- ----------------------------------------
Total E&P 1,125 1,077 967 991 4,160 1,257 1,354 1,420 4,031
- ---------------------------------------------------------------------------- ----------------------------------------
Midstream 31 25 31 43 130 55 42 38 135
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. R&M 275 248 416 176 1,115 403 734 505 1,642
International R&M 114 73 69 26 282 61 84 203 348
- ---------------------------------------------------------------------------- ----------------------------------------
Total R&M 389 321 485 202 1,397 464 818 708 1,990
- ---------------------------------------------------------------------------- ----------------------------------------
Chemicals (23) 12 7 11 7 39 46 81 166
Emerging Businesses (34) (23) (18) (24) (99) (22) (29) (27) (78)
Corporate and Other (225) (316) (223) (238) (1,002) (190) (218) (209) (617)
- ---------------------------------------------------------------------------- ----------------------------------------
Consolidated 1,263 1,096 1,249 985 4,593 1,603 2,013 2,011 5,627
============================================================================ ========================================
Cumulative Effect of Accounting Changes
U.S. E&P 142 - - - 142 - - - -
International E&P - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total E&P 142 - - - 142 - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Midstream - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. R&M (125) - - - (125) - - - -
International R&M - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total R&M (125) - - - (125) - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Chemicals - - - - - - - - -
Emerging Businesses - - - - - - - - -
Corporate and Other (112) - - - (112) - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Consolidated (95) - - - (95) - - - -
============================================================================ ========================================
Income (Loss) from Discontinued Operations
Corporate and Other 53 91 57 36 237 13 62 (5) 70
============================================================================ ========================================
Net Income (Loss)
U.S. E&P 820 517 546 491 2,374 635 671 701 2,007
International E&P 447 560 421 500 1,928 622 683 719 2,024
- ---------------------------------------------------------------------------- ----------------------------------------
Total E&P 1,267 1,077 967 991 4,302 1,257 1,354 1,420 4,031
- ---------------------------------------------------------------------------- ----------------------------------------
Midstream 31 25 31 43 130 55 42 38 135
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. R&M 150 248 416 176 990 403 734 505 1,642
International R&M 114 73 69 26 282 61 84 203 348
- ---------------------------------------------------------------------------- ----------------------------------------
Total R&M 264 321 485 202 1,272 464 818 708 1,990
- ---------------------------------------------------------------------------- ----------------------------------------
Chemicals (23) 12 7 11 7 39 46 81 166
Emerging Businesses (34) (23) (18) (24) (99) (22) (29) (27) (78)
Corporate and Other (284) (225) (166) (202) (877) (177) (156) (214) (547)
- ---------------------------------------------------------------------------- ----------------------------------------
Consolidated 1,221 1,187 1,306 1,021 4,735 1,616 2,075 2,006 5,697
============================================================================ ========================================
Page 1 of 10
CONOCOPHILLIPS
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
Millions of Dollars
------------------------------------------------------------------------------------
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
Income from Continuing Operations
Before Income Taxes
U.S. E&P 1,050 803 853 757 3,463 987 1,049 1,057 3,093
International E&P 1,260 967 1,029 941 4,197 1,410 1,360 1,654 4,424
- ---------------------------------------------------------------------------- ----------------------------------------
Total E&P 2,310 1,770 1,882 1,698 7,660 2,397 2,409 2,711 7,517
- ---------------------------------------------------------------------------- ----------------------------------------
Midstream 51 42 50 70 213 86 66 62 214
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. R&M 453 396 639 279 1,767 636 1,149 803 2,588
International R&M 150 94 86 16 346 79 111 268 458
- ---------------------------------------------------------------------------- ----------------------------------------
Total R&M 603 490 725 295 2,113 715 1,260 1,071 3,046
- ---------------------------------------------------------------------------- ----------------------------------------
Chemicals (44) 15 10 14 (5) 49 56 99 204
Emerging Businesses (51) (34) (29) (36) (150) (34) (42) (44) (120)
Corporate and Other (300) (502) (328) (364) (1,494) (249) (279) (239) (767)
- ---------------------------------------------------------------------------- ----------------------------------------
Consolidated 2,569 1,781 2,310 1,677 8,337 2,964 3,470 3,660 10,094
============================================================================ ========================================
Income from Continuing Operations
Effective Tax Rates
U.S. E&P 35.4% 35.6% 36.0% 35.1% 35.5% 35.7% 36.0% 33.7% 35.1%
International E&P 64.5% 42.1% 59.1% 46.9% 54.1% 55.9% 49.8% 56.5% 54.2%
- ---------------------------------------------------------------------------- ----------------------------------------
Total E&P 51.3% 39.2% 48.6% 41.6% 45.7% 47.6% 43.8% 47.6% 46.4%
- ---------------------------------------------------------------------------- ----------------------------------------
Midstream 39.2% 40.5% 38.0% 38.6% 39.0% 36.0% 36.4% 38.7% 36.9%
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. R&M 39.3% 37.4% 34.9% 36.9% 36.9% 36.6% 36.1% 37.1% 36.6%
International R&M 24.0% 22.3% 19.8% -62.5% 18.5% 22.8% 24.3% 24.3% 24.0%
- ---------------------------------------------------------------------------- ----------------------------------------
Total R&M 35.5% 34.5% 33.1% 31.5% 33.9% 35.1% 35.1% 33.9% 34.7%
- ---------------------------------------------------------------------------- ----------------------------------------
Chemicals 47.7% 20.0% 30.0% 21.4% 240.0% 20.4% 17.9% 18.2% 18.6%
Emerging Businesses 33.3% 32.4% 37.9% 33.3% 34.0% 35.3% 31.0% 38.6% 35.0%
Corporate and Other 25.0% 37.1% 32.0% 34.6% 32.9% 23.7% 21.9% 12.6% 19.6%
- ---------------------------------------------------------------------------- ----------------------------------------
Consolidated 50.8% 38.5% 45.9% 41.3% 44.9% 45.9% 42.0% 45.1% 44.3%
============================================================================ ========================================
Page 2 of 10
CONOCOPHILLIPS
CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX)
Millions of Dollars
------------------------------------------------------------------------------------
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
U.S. E&P
Gain (loss) on asset sales - 16 65 - 81 - - - -
Property impairments - (14) (10) (18) (42) (3) - - (3)
Tax credit utilization - - - - - - - 22 22
Pending claims and settlements - (20) - - (20) - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total - (18) 55 (18) 19 (3) - 22 19
- ---------------------------------------------------------------------------- ----------------------------------------
International E&P
Gain (loss) on asset sales - - 33 - 33 56 (13) - 43
Property impairments (12) (32) - (18) (62) - - (1) (1)
Canada tax law change - - - 95 95 - 31 - 31
Norway Removal Grant Act (1986) repeal* - 87 - - 87 - - - -
Bayu-Undan ownership realignment - 51 - - 51 - - - -
Angola leasehold impairment - - - 12 12 - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total (12) 106 33 89 216 56 18 (1) 73
- ---------------------------------------------------------------------------- ----------------------------------------
Total E&P (12) 88 88 71 235 53 18 21 92
- ---------------------------------------------------------------------------- ----------------------------------------
Midstream
Property impairments - - - - - (12) (10) - (22)
- ---------------------------------------------------------------------------- ----------------------------------------
Total - - - - - (12) (10) - (22)
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. R&M
Gain (loss) on asset sales - - - - - - - - -
Property impairments - - - (1) (1) (5) - (6) (11)
Pending claims and settlements - - - - - - - (34) (34)
- ---------------------------------------------------------------------------- ----------------------------------------
Total - - - (1) (1) (5) - (40) (45)
- ---------------------------------------------------------------------------- ----------------------------------------
International R&M
Gain (loss) on asset sales - - - - - - - - -
Property impairments - - - - - - - - -
Other - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total R&M - - - (1) (1) (5) - (40) (45)
- ---------------------------------------------------------------------------- ----------------------------------------
Chemicals
- - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Emerging Businesses
- - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Corporate and Other
Insurance demutualization benefits 34 - - - 34 - - - -
Property impairments - (3) - - (3) - - - -
Merger-related expenses (27) (115) (41) (40) (223) (14) - - (14)
Premium on early debt retirement (10) (9) - (34) (53) - - (43) (43)
Other - - - - - - - - -
- ---------------------------------------------------------------------------- ----------------------------------------
Total (3) (127) (41) (74) (245) (14) - (43) (57)
- ---------------------------------------------------------------------------- ----------------------------------------
Total Company (15) (39) 47 (4) (11) 22 8 (62) (32)
======================================================================================================================
* Net of $21 million of property impairments.
Page 3 of 10
CONOCOPHILLIPS
CASH FLOW INFORMATION
Millions of Dollars
------------------------------------------------------------------------------------
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
Cash Flows from Operating Activities
Income from continuing operations 1,263 1,096 1,249 985 4,593 1,603 2,013 2,011 5,627
DD&A and property impairments 887 1,003 876 971 3,737 949 932 950 2,831
Dry hole costs and
leasehold impairment 40s 54 75 131 300 87 105 150 342
Accretion on discounted liabilities 33 35 39 38 145 36 41 49 126
Deferred income taxes 243 10 80 68 401 360 310 328 998
Undistributed equity earnings 18 (66) (143) 132 (59) (181) (97) (263) (541)
Net (gain) loss on asset
dispositions (56) (28) (142) 15 (211) (82) (6) 6 (82)
Other 56 (94) (88) (202) (328) 70 65 (30) 105
Net working capital changes 636 16 51 (114) 589 (777) (1,101) 1,267 (611)
Discontinued operations - 120 61 8 189 8 14 (55) (33)
- ---------------------------------------------------------------------------- ----------------------------------------
Net Cash Provided by
Operating Activities 3,120 2,146 2,058 2,032 9,356 2,073 2,276 4,413 8,762
- ---------------------------------------------------------------------------- ----------------------------------------
Cash Flows from Investing Activities
Capital expenditures
and investments:
E&P (1,012) (1,167) (1,109) (1,220) (4,508) (1,210) (1,239) (1,248) (3,697)
Midstream (2) (2) (2) (4) (10) (3) (2) (1) (6)
R&M (203) (245) (302) (429) (1,179) (215) (278) (277) (770)
Chemicals - - - - - - - - -
Emerging Businesses (66) (98) (60) (60) (284) (28) (27) (19) (74)
Corporate and Other (25) (45) (47) (71) (188) (25) (38) (49) (112)
- ---------------------------------------------------------------------------- ----------------------------------------
Total capital expenditures
& invesments (1,308) (1,557) (1,520) (1,784) (6,169) (1,481) (1,584) (1,594) (4,659)
Acquisitions, net of
cash acquired - - - - - - - - -
Acquisitions - adoption of FIN 46 225 - - - 225 - - 11 11
Proceeds from asset dispositions 125 466 913 1,155 2,659 449 905 73 1,427
Long-term advances to affiliates
and other investments (28) (8) 38 21 23 (44) 9 30 (5)
Discontinued operations (26) (5) (28) (177) (236) (1) (1) - (2)
- ---------------------------------------------------------------------------- ----------------------------------------
Net Cash Used for Investing
Activities (1,012) (1,104) (597) (785) (3,498) (1,077) (671) (1,480) (3,228)
- ---------------------------------------------------------------------------- ----------------------------------------
Cash Flows from Financing Activities
Net issuance (repayment) of debt (1,569) (709) (1,514) (1,019) (4,811) (722) (1,361) (221) (2,304)
Issuance of stock 19 14 20 55 108 112 95 62 269
Dividends (271) (272) (272) (292) (1,107) (294) (296) (296) (886)
Other (8) 19 64 36 111 89 94 (66) 117
- ---------------------------------------------------------------------------- ----------------------------------------
Net Cash Provided by (Used for)
Financing Activities (1,829) (948) (1,702) (1,220) (5,699) (815) (1,468) (521) (2,804)
- ---------------------------------------------------------------------------- ----------------------------------------
Effect of Exchange Rate Changes 57 13 (26) (20) 24 (12) 8 47 43
- ---------------------------------------------------------------------------- ----------------------------------------
Net Change in Cash
and Cash Equivalents 336 107 (267) 7 183 169 145 2,459 2,773
Cash and cash equivalents
at beginning of period 307 643 750 483 307 490 659 804 490
- ---------------------------------------------------------------------------- ----------------------------------------
Cash and Cash Equivalents
at End of Period 643 750 483 490 490 659 804 3,263 3,263
============================================================================ ========================================
Page 4 of 10
CONOCOPHILLIPS
TOTAL E&P
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
E&P Net Income ($ Millions) 1,267 1,077 967 991 4,302 1,257 1,354 1,420 4,031
============================================================================ ========================================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 1,626 1,641 1,561 1,611 1,609 1,611 1,563 1,484 1,553
- ---------------------------------------------------------------------------- ----------------------------------------
Crude Oil and Condensate (MB/D)
Consolidated 880 850 793 806 832 828 809 733 790
Equity affiliates 55 117 120 116 102 113 104 111 109
- ---------------------------------------------------------------------------- ----------------------------------------
Total 935 967 913 922 934 941 913 844 899
============================================================================ ========================================
Sales of crude oil produced (MB/D) 911 996 917 921 936 928 888 873 896
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids (MB/D) 71 72 62 72 69 76 79 87 81
- ----------------------------------------------------------------------------------------------------------------------
Natural Gas (MMCF/D)
Consolidated 3,605 3,485 3,373 3,581 3,510 3,415 3,299 3,179 3,298
Equity affiliates 12 11 11 12 12 9 4 4 5
- ---------------------------------------------------------------------------- ----------------------------------------
Total 3,617 3,496 3,384 3,593 3,522 3,424 3,303 3,183 3,303
============================================================================ ========================================
Canadian Syncrude (MB/D) 17 19 22 18 19 23 20 22 22
- ---------------------------------------------------------------------------- ----------------------------------------
Industry Prices (Platt's)
Crude Oil ($/bbl)
WTI spot 34.06 29.02 30.18 31.17 31.11 35.23 38.31 43.86 39.13
Brent dated 31.51 26.03 28.41 29.42 28.84 31.95 35.36 41.54 36.28
Natural Gas--Henry Hub
1st of month ($/mcf) 6.58 5.40 4.97 4.60 5.39 5.69 6.00 5.75 5.81
- ---------------------------------------------------------------------------- ----------------------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated 31.27 26.33 28.15 28.43 28.54 32.08 35.32 40.41 35.90
Equity affiliates 20.97 16.85 19.90 17.86 18.58 18.68 25.00 25.86 22.93
Total 30.73 25.19 27.00 27.24 27.47 30.35 34.11 38.77 34.34
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids ($/bbl) 24.65 19.73 20.10 23.36 21.95 25.43 26.71 30.73 27.94
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas ($/mcf)*
Consolidated 4.50 3.99 3.84 3.99 4.08 4.41 4.43 4.48 4.44
Equity affiliates 4.82 4.89 4.12 3.96 4.44 3.91 0.31 0.31 2.59
Total 4.50 3.99 3.84 3.99 4.08 4.41 4.43 4.48 4.44
- ---------------------------------------------------------------------------- ----------------------------------------
* Certain amounts in 2003 and first two quarters of 2004 restated to conform to current period presentation.
Exploration Charges ($ Millions)
Dry Holes 20 30 39 78 167 67 42 82 191
Lease Impairments 20 24 36 53 133 20 63 68 151
- ---------------------------------------------------------------------------- ----------------------------------------
Total Non-Cash Charges 40 54 75 131 300 87 105 150 342
Other (G&G and Lease Rentals) 76 88 57 80 301 56 58 55 169
- ---------------------------------------------------------------------------- ----------------------------------------
Total Exploration Charges 116 142 132 211 601 143 163 205 511
============================================================================ ========================================
Depreciation, Depletion and
Amortization ($ Millions) 662 652 653 695 2,662 704 720 711 2,135
- ---------------------------------------------------------------------------- ----------------------------------------
Page 5 of 10
CONOCOPHILLIPS
U.S. E&P
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
U.S. E&P Net Income ($ Millions) 820 517 546 491 2,374 635 671 701 2,007
============================================================================ ========================================
Alaska ($ Millions) 508 302 302 333 1,445 403 397 451 1,251
- ---------------------------------------------------------------------------- ----------------------------------------
Lower 48 ($ Millions) 312 215 244 158 929 232 274 250 756
- ---------------------------------------------------------------------------- ----------------------------------------
Production
Total U.S. (MBOE/D) 700 683 651 664 674 659 637 579 624
- ---------------------------------------------------------------------------- ----------------------------------------
Crude Oil and Condensate (MB/D)
Alaska 337 331 314 318 325 320 307 253 293
Lower 48 60 57 51 50 54 53 52 50 51
- ---------------------------------------------------------------------------- ----------------------------------------
Total 397 388 365 368 379 373 359 303 344
============================================================================ ========================================
Sales of crude oil produced (MB/D) 391 389 369 372 380 373 354 312 346
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids (MB/D)*
Alaska 26 23 19 24 23 26 23 19 23
Lower 48 22 26 25 27 25 24 26 26 25
- ---------------------------------------------------------------------------- ----------------------------------------
Total 48 49 44 51 48 50 49 45 48
============================================================================ ========================================
*Includes reinjection volumes sold
lease-to-lease: 15 14 13 16 15 16 15 10 14
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas (MMCF/D)
Alaska 189 162 180 205 184 185 147 164 166
Lower 48 1,338 1,311 1,271 1,264 1,295 1,233 1,226 1,220 1,226
- ---------------------------------------------------------------------------- ----------------------------------------
Total 1,527 1,473 1,451 1,469 1,479 1,418 1,373 1,384 1,392
============================================================================ ========================================
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Alaska
North Slope 25.95 21.70 22.82 23.17 23.41 28.00 31.69 35.66 31.54
- ---------------------------------------------------------------------------- ----------------------------------------
West Coast 31.47 27.19 28.31 28.51 28.87 32.93 36.53 40.48 36.41
- ---------------------------------------------------------------------------- ----------------------------------------
Lower 48 31.48 27.34 27.94 28.02 28.76 31.86 34.39 39.56 35.21
- ---------------------------------------------------------------------------- ----------------------------------------
Total U.S. 31.47 27.21 28.26 28.45 28.85 32.78 36.22 40.33 36.23
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids ($/bbl)
Alaska 31.32 27.24 28.42 28.82 29.04 32.93 36.38 40.52 36.45
- ---------------------------------------------------------------------------- ----------------------------------------
Lower 48 22.13 17.77 19.71 20.81 20.02 24.19 25.82 29.40 26.55
- ---------------------------------------------------------------------------- ----------------------------------------
Total U.S. 24.96 20.25 21.31 22.85 22.30 26.80 28.38 32.22 29.18
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas ($/mcf)*
Alaska 1.97 1.88 1.33 1.88 1.76 2.54 2.31 2.22 2.38
- ---------------------------------------------------------------------------- ----------------------------------------
Lower 48 5.53 4.77 4.61 4.32 4.81 5.00 5.49 5.29 5.26
- ---------------------------------------------------------------------------- ----------------------------------------
Total U.S. 5.40 4.63 4.45 4.18 4.67 4.88 5.35 5.19 5.14
- ---------------------------------------------------------------------------- ----------------------------------------
* Certain amounts in 2003 and first two quarters of 2004 restated to conform to current period presentation.
Kenai, Alaska LNG Sales
Volume (MMCF/D) 130 91 121 140 121 118 82 115 105
- ---------------------------------------------------------------------------- ----------------------------------------
Sales price per MCF 4.38 4.56 4.46 4.44 4.45 4.51 4.80 5.06 4.78
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. Exploration Charges ($ Millions)
Dry Holes 16 3 9 48 76 32 32 (5) 59
Lease Impairments 13 12 10 12 47 11 11 10 32
- ---------------------------------------------------------------------------- ----------------------------------------
Total Non-Cash Charges 29 15 19 60 123 43 43 5 91
Other (G&G and Lease Rentals) 28 22 23 8 81 15 19 15 49
- ---------------------------------------------------------------------------- ----------------------------------------
Total U.S. Exploration Charges 57 37 42 68 204 58 62 20 140
============================================================================ ========================================
Alaska Only 25 10 11 9 55 17 43 7 67
- ---------------------------------------------------------------------------- ----------------------------------------
Depreciation, Depletion and
Amortization ($ Millions)
Alaska 124 135 130 127 516 119 125 122 366
Lower 48 151 150 156 134 591 146 145 157 448
- ---------------------------------------------------------------------------- ----------------------------------------
Total U.S. 275 285 286 261 1,107 265 270 279 814
============================================================================ ========================================
Page 6 of 10
CONOCOPHILLIPS
INTERNATIONAL E&P
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
International E&P
Net Income ($ Millions) 447 560 421 500 1,928 622 683 719 2,024
============================================================================ ========================================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 926 958 910 947 935 952 926 905 929
- ---------------------------------------------------------------------------- ----------------------------------------
Crude Oil and Condensate (MB/D)
Consolidated
Norway 226 214 207 205 213 215 212 189 205
United Kingdom 87 82 67 72 77 67 64 59 64
Canada 33 31 29 28 30 27 25 24 25
China 23 27 25 28 26 32 28 25 28
Indonesia 21 17 16 10 16 15 14 14 15
Vietnam 16 15 11 22 16 31 31 35 32
Timor Sea 3 3 3 3 3 5 15 29 17
Other 74 73 70 70 72 63 61 55 60
Equity affiliates 55 117 120 116 102 113 104 111 109
- ---------------------------------------------------------------------------- ----------------------------------------
Total 538 579 548 554 555 568 554 541 555
============================================================================ ========================================
Sales of crude oil produced (MB/D) 520 607 548 549 556 555 534 561 550
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids (MB/D)
Norway 8 7 7 8 7 9 8 8 8
Canada 11 11 9 10 10 10 10 10 11
Other 4 5 2 3 4 7 12 24 14
- ---------------------------------------------------------------------------- ----------------------------------------
Total 23 23 18 21 21 26 30 42 33
============================================================================ ========================================
Natural Gas (MMCF/D)
Consolidated
Norway 305 273 216 307 275 319 303 274 299
United Kingdom 1,002 952 853 954 940 879 821 720 807
Canada 436 424 448 431 435 428 437 425 430
Timor Sea 61 61 61 56 60 40 32 35 35
Indonesia 224 246 275 275 255 248 237 248 244
Vietnam - - - 12 3 17 15 15 16
Other 50 56 69 77 63 66 81 78 75
Equity affiliates 12 11 11 12 12 9 4 4 5
- ---------------------------------------------------------------------------- ----------------------------------------
Total 2,090 2,023 1,933 2,124 2,043 2,006 1,930 1,799 1,911
============================================================================ ========================================
Canadian Syncrude (MB/D) 17 19 22 18 19 23 20 22 22
- ---------------------------------------------------------------------------- ----------------------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated
Norway 32.72 26.28 29.08 29.08 29.24 32.13 34.72 40.70 36.03
United Kingdom 30.11 24.34 28.32 28.29 27.70 31.27 34.19 39.57 34.86
Canada 28.40 23.61 24.15 23.71 25.06 28.95 30.58 36.16 31.81
China 28.87 26.51 26.38 28.56 27.55 29.91 33.02 37.99 33.40
Indonesia 29.35 24.54 26.32 26.52 26.88 32.21 36.20 42.71 37.05
Vietnam 30.26 27.54 27.12 30.88 29.21 31.76 36.42 41.36 36.70
Timor Sea 32.43 27.38 28.25 29.75 29.37 35.49 37.32 46.65 42.37
Other 30.16 25.44 27.42 27.94 27.68 30.89 34.87 39.54 35.06
Equity affiliates 20.97 16.85 19.90 17.86 18.58 18.68 25.00 25.86 22.93
Total 30.17 23.90 26.15 26.42 26.53 28.71 32.72 37.90 33.15
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids ($/bbl)
Norway 21.85 18.13 18.50 22.96 20.27 24.34 24.22 27.79 25.63
Canada 26.11 20.78 23.55 25.27 23.93 26.38 28.58 31.15 28.69
Other 23.40 16.73 14.18 25.13 16.48 18.43 21.24 29.50 25.65
Total 24.22 18.96 18.23 24.35 21.39 23.53 24.69 29.53 26.61
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas ($/mcf)
Consolidated
Norway 3.66 3.86 4.21 4.09 3.94 4.37 3.99 4.12 4.16
United Kingdom* 3.52 3.33 2.98 4.13 3.50 4.04 3.47 3.79 3.77
Canada 5.42 4.34 4.17 4.02 4.48 4.88 5.01 4.64 4.85
Timor Sea 0.43 0.42 0.45 0.42 0.43 0.43 0.45 0.46 0.45
Indonesia 4.66 4.16 4.35 4.21 4.33 4.38 4.28 5.02 4.56
Vietnam - - - 1.04 1.04 1.10 0.99 1.01 1.03
Other 0.54 0.54 0.54 0.68 0.58 0.66 0.59 0.62 0.62
Equity affiliates 4.82 4.89 4.12 3.96 4.44 3.91 0.31 0.31 2.59
Total* 3.90 3.56 3.42 3.87 3.69 4.11 3.81 3.98 3.97
- ---------------------------------------------------------------------------- ----------------------------------------
* 2003 and first two quarters of 2004 restated to conform to current period presentation.
International Exploration Charges ($ Millions)
Dry Holes 4 27 30 30 91 35 10 87 132
Lease Impairments 7 12 26 41 86 9 52 58 119
- ---------------------------------------------------------------------------- ----------------------------------------
Total Non-Cash Charges 11 39 56 71 177 44 62 145 251
Other (G&G and Lease Rentals) 48 66 34 72 220 41 39 40 120
- ---------------------------------------------------------------------------- ----------------------------------------
Total International
Exploration Charges 59 105 90 143 397 85 101 185 371
============================================================================ ========================================
Depreciation, Depletion and
Amortization ($ Millions) 387 367 367 434 1,555 439 450 432 1,321
- ---------------------------------------------------------------------------- ----------------------------------------
Page 7 of 10
CONOCOPHILLIPS
R&M
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
R&M Net Income ($ Millions) 264 321 485 202 1,272 464 818 708 1,990
============================================================================ ========================================
United States ($ Millions) 150 248 416 176 990 403 734 505 1,642
- ---------------------------------------------------------------------------- ----------------------------------------
International ($ Millions) 114 73 69 26 282 61 84 203 348
- ---------------------------------------------------------------------------- ----------------------------------------
Market Indicators
U.S. East Coast Crack Spread ($/bbl) 6.16 3.46 6.37 4.98 5.24 6.87 9.14 7.00 7.67
U.S. Gulf Coast Crack Spread ($/bbl) 5.64 3.65 5.38 3.72 4.60 6.36 9.17 6.33 7.29
U.S. Group Central Crack
Spread ($/bbl) 6.12 6.96 8.32 5.34 6.69 6.91 11.65 8.09 8.88
U.S. West Coast Crack
Spread ($/bbl) 12.79 11.39 14.00 11.44 12.41 16.10 24.13 17.92 19.38
U.S. Weighted 3:2:1 Crack
Spread ($/bbl) 6.99 5.86 7.84 5.67 6.59 8.39 12.60 9.10 10.03
NW Europe Crack Spread ($/bbl) 5.68 3.17 3.11 3.20 3.79 2.56 5.13 3.90 3.86
Singapore 3:2:1Crack Spread ($/bbl) 8.16 4.65 5.64 7.12 6.39 10.33 9.48 13.11 10.97
U.S. Wholesale Gasoline Mktg
Mrgn ($/bbl) 1.53 2.36 2.15 1.45 1.87 0.69 1.83 1.50 1.34
- ---------------------------------------------------------------------------- ----------------------------------------
Realized Margins
Refining Margin ($/bbl)
U.S. 6.46 5.34 6.39 5.56 5.93 7.12 9.88 8.84 8.62
International 6.00 3.67 4.38 3.61 4.44 5.51 7.24 9.01 7.37
- ---------------------------------------------------------------------------- ----------------------------------------
Marketing Margin ($/bbl)
U.S. 1.86 2.62 2.17 1.75 2.10 1.08 1.49 1.15 1.24
International 7.09 9.06 7.82 6.41 7.59 6.50 8.20 7.69 7.49
- ---------------------------------------------------------------------------- ----------------------------------------
Depreciation, Depletion and
Amortization ($ Millions) 167 174 174 174 689 186 172 202 560
- ---------------------------------------------------------------------------- ----------------------------------------
Turnaround Expense ($ Millions) 60 38 19 63 180 59 78 57 194
- ---------------------------------------------------------------------------- ----------------------------------------
Eastern U.S.
Crude Oil Charge Input (MB/D) 415 435 428 421 425 413 375 368 385
Total Charge Input (MB/D) 466 488 468 442 466 440 421 415 425
Crude Oil Capacity Utilization (%) 97% 101% 100% 98% 99% 96% 87% 87% 90%
Clean Product Yield (%) 88% 84% 86% 88% 86% 87% 84% 87% 86%
- ---------------------------------------------------------------------------- ----------------------------------------
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 668 702 708 680 690 699 709 617 675
Total Charge Input (MB/D) 771 797 803 782 788 774 789 717 761
Crude Oil Capacity Utilization (%) 93% 98% 99% 95% 96% 97% 99% 88% 95%
Clean Product Yield (%) 82% 78% 80% 78% 79% 79% 75% 78% 77%
- ---------------------------------------------------------------------------- ----------------------------------------
Central U.S.
Crude Oil Charge Input (MB/D) 573 632 556 584 586 601 638 634 625
Total Charge Input (MB/D) 601 654 584 614 613 636 673 669 659
Crude Oil Capacity Utilization (%) 91% 101% 88% 93% 93% 96% 102% 99% 99%
Clean Product Yield (%) 84% 82% 81% 86% 83% 83% 83% 85% 84%
- ---------------------------------------------------------------------------- ----------------------------------------
Western U.S.
Crude Oil Charge Input (MB/D) 352 359 391 389 373 392 397 392 393
Total Charge Input (MB/D) 365 374 408 410 390 409 419 409 412
Crude Oil Capacity Utilization (%) 90% 91% 100% 99% 95% 100% 101% 99% 100%
Clean Product Yield (%) 82% 81% 83% 83% 82% 81% 81% 82% 81%
- ---------------------------------------------------------------------------- ----------------------------------------
TOTAL UNITED STATES
Crude Oil Charge Input (MB/D) 2,008 2,128 2,083 2,074 2,074 2,105 2,119 2,011 2,078
Total Charge Input (MB/D) 2,203 2,313 2,263 2,248 2,257 2,259 2,302 2,210 2,257
Crude Oil Capacity Utilization (%) 93% 98% 96% 96% 96% 97% 98% 93% 96%
Clean Product Yield (%) 84% 81% 82% 83% 82% 82% 80% 82% 82%
- ---------------------------------------------------------------------------- ----------------------------------------
Refined Products Production (MB/D)
Gasoline 1,060 1,077 1,070 1,061 1,067 1,059 1,043 1,060 1,054
Distillates 590 615 591 591 597 604 591 574 590
Aviation Fuel 190 173 200 195 189 167 177 164 170
Other 414 492 461 423 448 415 489 400 434
- ---------------------------------------------------------------------------- ----------------------------------------
Total 2,254 2,357 2,322 2,270 2,301 2,245 2,300 2,198 2,248
============================================================================ ========================================
Petroleum Products Sales (MB/D)
Gasoline 1,331 1,381 1,398 1,365 1,369 1,315 1,328 1,366 1,337
Distillates 600 590 580 530 575 570 538 544 551
Aviation Fuel 164 164 197 193 180 178 191 200 190
Other 509 493 497 474 492 517 573 553 548
- ---------------------------------------------------------------------------- ----------------------------------------
Total 2,604 2,628 2,672 2,562 2,616 2,580 2,630 2,663 2,626
============================================================================ ========================================
Page 8 of 10
CONOCOPHILLIPS
R&M (continued)
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
International - Consolidated - United Kingdom and Ireland
Crude Oil Charge Input (MB/D)** 299 280 288 269 283 289 197 291 259
Total Charge Input (MB/D) 301 286 296 280 291 299 216 300 272
Crude Oil Capacity Utilization (%)** 98% 92% 94% 88% 93% 94% 64% 100% 85%
Clean Product Yield (%) 84% 83% 84% 84% 84% 84% 81% 83% 83%
- ---------------------------------------------------------------------------- ----------------------------------------
International - Equity Affiliates - Net Share*
Crude Oil Charge Input (MB/D) 134 132 129 128 131 120 112 134 122
Total Charge Input (MB/D) 137 135 134 131 134 121 113 138 124
Crude Oil Capacity Utilization (%) 98% 97% 95% 94% 96% 87% 81% 99% 89%
Clean Product Yield (%) 82% 83% 81% 82% 82% 82% 83% 81% 82%
- ---------------------------------------------------------------------------- ----------------------------------------
TOTAL INTERNATIONAL
Crude Oil Charge Input (MB/D)** 433 412 417 397 414 409 309 425 381
Total Charge Input (MB/D) 438 421 430 411 425 420 329 438 396
Crude Oil Capacity Utilization (%)** 98% 93% 94% 90% 94% 92% 69% 99% 86%
Clean Product Yield (%) 83% 83% 83% 84% 83% 84% 82% 82% 83%
- ---------------------------------------------------------------------------- ----------------------------------------
Refined Products Production (MB/D)
Gasoline 142 132 139 125 134 124 109 138 124
Distillates 183 177 185 154 175 181 136 190 169
Aviation Fuel 24 15 19 21 20 24 16 22 20
Other 87 83 70 95 83 81 57 89 76
- ---------------------------------------------------------------------------- ----------------------------------------
Total 436 407 413 395 412 410 318 439 389
============================================================================ ========================================
Petroleum Products Sales (MB/D)
Gasoline 202 190 181 171 186 185 180 173 179
Distillates 181 199 192 172 186 228 184 207 206
Aviation Fuel 5 7 14 7 8 6 9 10 8
Other 40 52 54 53 50 82 67 82 77
- ---------------------------------------------------------------------------- ----------------------------------------
Total 428 448 441 403 430 501 440 472 470
============================================================================ ========================================
Worldwide - Including Net Share of Equity Affiliates
Crude Oil Charge Input (MB/D)** 2,441 2,540 2,500 2,471 2,488 2,514 2,428 2,436 2,459
Total Charge Input (MB/D) 2,641 2,734 2,693 2,659 2,682 2,679 2,631 2,648 2,653
Crude Oil Capacity Utilization (%)** 94% 97% 96% 95% 95% 96% 93% 94% 94%
Clean Product Yield (%) 84% 81% 82% 83% 83% 82% 80% 82% 82%
- ---------------------------------------------------------------------------- ----------------------------------------
Refined Products Production (MB/D)
Gasoline 1,202 1,209 1,209 1,186 1,201 1,183 1,152 1,198 1,178
Distillates 773 792 776 745 772 785 727 764 759
Aviation Fuel 214 188 219 216 209 191 193 186 190
Other 501 575 531 518 531 496 546 489 510
- ---------------------------------------------------------------------------- ----------------------------------------
Total 2,690 2,764 2,735 2,665 2,713 2,655 2,618 2,637 2,637
============================================================================ ========================================
Petroleum Products Sales (MB/D)
Gasoline 1,533 1,571 1,579 1,536 1,555 1,500 1,508 1,539 1,516
Distillates 781 789 772 702 761 798 722 751 757
Aviation Fuel 169 171 211 200 188 184 200 210 198
Other 549 545 551 527 542 599 640 635 625
- ---------------------------------------------------------------------------- ----------------------------------------
Total 3,032 3,076 3,113 2,965 3,046 3,081 3,070 3,135 3,096
============================================================================ ========================================
* Represents 18.75 percent interest in a refinery complex at Karlsruhe, Germany; 16.33 percent interest
in two refineries in Kralupy and Litvinov, Czech Republic;
and 47 percent interest in a refinery at Melaka, Malaysia.
** 2003 and first two quarters of 2004 restated to conform to current period presentation.
Page 9 of 10
CONOCOPHILLIPS
MIDSTREAM
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
Midstream Net Income ($ Millions) 31 25 31 43 130 55 42 38 135
============================================================================ ========================================
U.S. Equity Affiliate ($ Millions)* 13 23 18 18 72 33 33 26 92
- ---------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States 51 53 50 54 52 54 24 28 35
International 47 35 47 50 45 47 33 49 43
Equity Affiliates
United States* 114 110 111 110 111 109 112 111 111
International** 7 7 7 6 7 6 5 6 6
- ---------------------------------------------------------------------------- ----------------------------------------
Total 219 205 215 220 215 216 174 194 195
============================================================================ ========================================
* Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS).
** 2003 and first two quarters of 2004 restated to conform to current period presentation.
Natural Gas Liquids Fractionated (MB/D)
United States* 168 158 172 168 167 158 144 145 149
International 59 49 60 62 57 63 43 62 56
- ---------------------------------------------------------------------------- ----------------------------------------
Total 227 207 232 230 224 221 187 207 205
============================================================================ ========================================
* Excludes DEFS.
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated 25.59 20.99 20.94 23.14 22.67 25.68 26.42 31.03 27.71
DEFS 24.53 20.53 20.67 22.76 22.12 24.81 25.61 30.27 26.90
- ---------------------------------------------------------------------------- ----------------------------------------
* Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas
liquids component and location mix.
Depreciation, Depletion and
Amortization ($ Millions) 14 14 13 13 54 13 9 11 33
- ---------------------------------------------------------------------------- ----------------------------------------
EMERGING BUSINESSES
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
Emerging Businesses
Net Income (Loss) ($ Millions) (34) (23) (18) (24) (99) (22) (29) (27) (78)
============================================================================ ========================================
Detail of Net Income (Loss) ($ Millions)
Technology Solutions (5) (6) (5) (4) (20) (4) (4) (3) (11)
Gas-to-Liquids (20) (13) (7) (10) (50) (9) (7) (9) (25)
Power 1 (1) (3) (2) (5) (4) (16) (8) (28)
Other (10) (3) (3) (8) (24) (5) (2) (7) (14)
- ---------------------------------------------------------------------------- ----------------------------------------
Total (34) (23) (18) (24) (99) (22) (29) (27) (78)
============================================================================ ========================================
CORPORATE AND OTHER
2003 2004
------------------------------------------ ----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------ ----------------------------------------
Corporate and Other
Net Income (Loss) ($ Millions) (284) (225) (166) (202) (877) (177) (156) (214) (547)
============================================================================ ========================================
Detail of Net Income (Loss) ($ Millions)
Net interest expense (190) (145) (134) (163) (632) (104) (119) (120) (343)
Corporate overhead (30) (43) (33) (67) (173) (55) (54) (51) (160)
Discontinued operations 53 91 57 36 237 13 62 (5) 70
Merger-related costs (27) (115) (41) (40) (223) (14) - - (14)
Accounting change (112) - - - (112) - - - -
Other 22 (13) (15) 32 26 (17) (45) (38) (100)
- ---------------------------------------------------------------------------- ----------------------------------------
Total (284) (225) (166) (202) (877) (177) (156) (214) (547)
============================================================================ ========================================
Before-Tax Net Interest Expense ($ Millions)
Interest and financing expense (339) (306) (314) (287) (1,246) (279) (283) (227) (789)
Capitalized interest 73 78 98 77 326 115 104 121 340
Interest revenue 29 31 27 17 104 34 31 16 81
Premium on early debt retirement (12) (11) - (45) (68) - - (58) (58)
- ---------------------------------------------------------------------------- ----------------------------------------
(249) (208) (189) (238) (884) (130) (148) (148) (426)
============================================================================ ========================================
Debt
Total Debt ($ Millions) 21,007 20,254 18,739 17,780 17,780 17,109 15,619 15,486 15,486
Debt-to-Capital Ratio 40% 38% 36% 34% 34% 32% 29% 28% 28%
- ---------------------------------------------------------------------------- ----------------------------------------
Page 10 of 10