Exhibit 99.2
ConocoPhillips
Houston, Texas 77079
Preliminary
FINANCIAL HIGHLIGHTS
Millions of Dollars
---------------------------------------------------
Three Months Ended Six Months Ended
June 30 June 30
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- --------- ---------
Revenues
Sales and other operating revenues* $ 41,808 31,528 79,439 61,341
Equity in earnings of affiliates 701 322 1,754 591
Other income 105 36 339 171
---------- ------ ------ ------
42,614 31,886 81,532 62,103
---------- ------ ------ ------
Costs and expenses
Purchased crude oil, natural gas and products 28,523 20,363 54,095 40,098
Production and operating expenses 2,147 1,840 4,099 3,505
Selling, general and administrative expenses 539 516 1,078 984
Exploration expenses 121 163 292 306
Depreciation, depletion and amortization 985 912 2,026 1,830
Property impairments 9 20 31 51
Taxes other than income taxes* 4,664 4,428 9,152 8,542
Accretion on discounted liabilities 41 41 89 77
Interest and debt expense 127 159 265 304
Foreign currency transaction losses (gains) 21 (33) 18 (49)
Minority interests 5 7 15 21
---------- ------ ------ ------
37,182 28,416 71,160 55,669
---------- ------ ------ ------
Income from continuing operations before income taxes 5,432 3,470 10,372 6,434
Provision for income taxes 2,301 1,457 4,318 2,818
---------- ------ ------ ------
Income from continuing operations 3,131 2,013 6,054 3,616
Income (loss) from discontinued operations 7 62 (4) 75
---------- ------ ------ ------
Net income $ 3,138 2,075 6,050 3,691
========== ====== ====== ======
Income per share of common stock (dollars)**
Basic
Continuing operations $ 2.24 1.46 4.33 2.63
Discontinued operations 0.01 0.04 -- 0.05
Net income $ 2.25 1.50 4.33 2.68
Diluted
Continuing operations $ 2.21 1.44 4.26 2.60
Discontinued operations -- 0.04 -- 0.05
Net income $ 2.21 1.48 4.26 2.65
Average common shares outstanding (in thousands)**
Basic 1,396,724 1,379,380 1,397,305 1,375,788
Diluted 1,419,288 1,398,022 1,420,022 1,393,528
*Includes excise, value added and other
similar taxes on petroleum products sales: $ 4,338 4,172 8,493 7,994
** Per-share amounts and average number of common shares outstanding in all periods
reflect a two-for-one stock split effected as a 100 percent stock dividend on June 1, 2005.
1
ConocoPhillips
Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
Millions of Dollars
---------------------------------------
Three Months Ended Six Months Ended
June 30 June 30
--------------------- -----------------
2005 2004 2005 2004
INCOME (LOSS) FROM CONTINUING OPERATIONS
E&P
United States $ 966 671 1,858 1,306
International 963 683 1,858 1,305
------- ----- ----- -----
Total E&P 1,929 1,354 3,716 2,611
------- ----- ----- -----
Midstream 68 42 453 97
------- ----- ----- -----
R&M
United States 936 734 1,506 1,137
International 174 84 304 145
------- ----- ----- -----
Total R&M 1,110 818 1,810 1,282
------- ----- ----- -----
LUKOIL Investment 148 -- 258 --
Chemicals 63 46 196 85
Emerging Businesses (8) (29) (16) (51)
Corporate and other (179) (218) (363) (408)
------- ----- ----- -----
Consolidated $ 3,131 2,013 6,054 3,616
======= ===== ===== =====
INCOME (LOSS) FROM DISCONTINUED OPERATIONS
Corporate and other 7 62 (4) 75
SUMMARY OF NET INCOME (LOSS)
E&P
United States $ 966 671 1,858 1,306
International 963 683 1,858 1,305
------- ----- ----- -----
Total E&P 1,929 1,354 3,716 2,611
------- ----- ----- -----
Midstream 68 42 453 97
------- ----- ----- -----
R&M
United States 936 734 1,506 1,137
International 174 84 304 145
------- ----- ----- -----
Total R&M 1,110 818 1,810 1,282
------- ----- ----- -----
LUKOIL Investment 148 -- 258 --
Chemicals 63 46 196 85
Emerging Businesses (8) (29) (16) (51)
Corporate and other (172) (156) (367) (333)
------- ----- ----- -----
Net income $ 3,138 2,075 6,050 3,691
======= ===== ===== =====
2
ConocoPhillips
Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30 June 30
------------------ ------------------
2005 2004 2005 2004
------- ------ ----- ----
INCOME (LOSS) FROM CONTINUING
OPERATIONS
Effective tax rate % 42.4 % 42.0 41.6 43.8
Millions of Dollars
FOREIGN CURRENCY GAINS (LOSSES)
AFTER-TAX
E&P $ (8) 14 4 19
Midstream 7 -- 7 --
R&M (18) 5 (36) 6
LUKOIL Investment -- -- -- --
Chemicals -- -- -- --
Emerging Businesses -- 1 -- 1
Corporate and other (11) -- (4) 6
-------- ----- ----- -----
$ (30) 20 (29) 32
======== ===== ===== =====
CASH FLOWS FROM OPERATING ACTIVITIES
Income from continuing operations $ 3,131 2,013 6,054 3,616
Depreciation, depletion and amortization 985 912 2,026 1,830
Property impairments 9 20 31 51
Dry hole costs and leasehold impairment 47 105 156 192
Accretion on discounted liabilities 41 41 89 77
Deferred income taxes 369 310 492 670
Undistributed equity earnings (414) (97) (1,219) (278)
Net (gain) loss on asset dispositions (65) (6) (242) (88)
Other (113) 65 (191) 135
Working capital changes (1,224) (1,101) (336) (1,878)
-------- ----- ----- -----
Net cash provided by continuing operations 2,766 2,262 6,860 4,327
Net cash provided by discontinued operations 2 14 (3) 22
-------- ----- ----- -----
Net cash provided by operating activities $ 2,768 2,276 6,857 4,349
======== ===== ===== =====
CAPITAL EXPENDITURES AND INVESTMENTS
E&P
United States $ 576 308 898 614
International 1,761 931 2,645 1,835
-------- ----- ----- -----
2,337 1,239 3,543 2,449
Midstream -- 2 1 5
R&M 360 278 635 493
LUKOIL Investment 384 -- 708 --
Chemicals -- -- -- --
Emerging Businesses 7 27 3 55
Corporate and other* 37 38 57 63
-------- ----- ----- -----
$ 3,125 1,584 4,947 3,065
======== ===== ===== =====
*Excludes discontinued operations
OTHER
At June 30, 2005 At December 31, 2004
Total debt $ 14,013 15,002
Common stockholders' equity $ 47,300 42,723
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ConocoPhillips
Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
BY SEGMENT
Three Months Ended Six Months Ended
June 30 June 30
------------------ ----------------
2005 2004 2005 2004
---- ---- ---- ----
Thousands of Barrels Daily
E&P
Crude oil produced
United States
Alaska 297 307 303 314
Lower 48 63 52 62 52
--- --- --- ---
360 359 365 366
Norway 195 212 201 213
United Kingdom 60 64 60 66
Canada 23 25 23 26
China 25 28 24 30
Indonesia 16 14 19 15
Vietnam 26 31 26 31
Timor Sea 21 15 29 10
Other 54 61 54 61
--- --- --- ---
Total consolidated 780 809 801 818
Equity affiliates 123 104 122 109
--- --- --- ---
Total Worldwide 903 913 923 927
=== === === ===
Syncrude 21 20 18 22
=== === === ===
Natural gas liquids produced
United States
Alaska* 16 23 20 25
Lower 48 31 26 29 25
--- --- --- ---
47 49 49 50
Norway 9 8 9 8
Canada 10 10 10 10
Timor Sea 9 4 13 2
Other 5 8 6 8
--- --- --- ---
Total Worldwide 80 79 87 78
=== === === ===
*Includes reinjected volumes sold lease-to-lease 1 15 7 15
Millions of Cubic Feet Daily
Natural gas produced*
United States
Alaska 148 147 166 166
Lower 48 1,195 1,226 1,182 1,229
----- ----- ----- -----
1,343 1,373 1,348 1,395
Norway 268 303 283 312
United Kingdom 741 821 782 850
Canada 422 437 420 432
Timor Sea 35 32 35 36
Indonesia 287 237 280 243
Vietnam 14 15 16 16
Other 81 81 78 73
----- ----- ----- -----
Total consolidated 3,191 3,299 3,242 3,357
Equity affiliates 7 4 7 6
----- ----- ----- -----
Total Worldwide 3,198 3,303 3,249 3,363
===== ===== ===== =====
*Represents quantities available for sale
Excludes gas equivalent of NGL shown above
Liquefied natural gas sales 96 82 114 100
LUKOIL Investment
Production (MBOE/D)* 223 -- 213 --
Refinery crude oil throughput (MB/D)* 102 -- 97 --
*Represents our estimated net share of LUKOIL
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ConocoPhillips
Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
Three Months Ended Six Months Ended
June 30 June 30
--------------------- ---------------------
2005 2004 2005 2004
---- ---- ---- ----
E&P
Per Unit
Average sales prices
Crude oil (per barrel)
United States
Alaska $ 49.22 36.53 46.55 34.68
Lower 48 43.58 34.39 42.45 33.11
Total U.S. 48.21 36.22 45.86 34.45
International 49.41 34.58 47.68 33.02
Total consolidated 48.88 35.32 46.85 33.68
Equity affiliates 36.11 25.48 33.59 22.17
Total Worldwide 46.93 34.17 45.04 32.27
Natural gas-lease (per MCF)
United States
Alaska 2.49 2.31 2.72 2.43
Lower 48 6.20 5.49 5.93 5.25
Total U.S. 6.07 5.35 5.83 5.11
International 5.16 3.81 5.10 3.96
Total consolidated 5.53 4.43 5.38 4.42
Equity affiliates 0.32 0.31 0.30 3.14
Total Worldwide 5.52 4.43 5.38 4.42
Midstream
Thousands of Barrels Daily
Natural gas liquids extracted
Consolidated
United States 21 24 22 38
International 44 33 48 40
Equity affiliates
United States* 112 112 111 111
International 6 5 6 6
------ ----- ---- ---
183 174 187 195
====== ===== ==== ===
*Represents 30.3 percent interest in Duke Energy Field Services LLC (DEFS).
Per Barrel
U.S. product prices
Weighted average NGL**
Consolidated $ 32.49 26.42 32.22 26.05
DEFS 31.33 25.61 30.97 25.21
**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
------------------------- -----------------------
2005 2004 2005 2004
-------- ------- ------- ------
Thousands of Barrels Daily
R&M
United States
Crude oil capacity 2,182 2,168 2,178 2,168
Crude oil runs 2,133 2,119 2,046 2,112
Refinery production 2,349 2,300 2,247 2,273
International*
Crude oil capacity 428 447 428 447
Crude oil runs 402 309 415 359
Refinery production 410 318 427 364
U.S. Petroleum products outside sales
Automotive Gasoline 1,426 1,328 1,364 1,321
Distillates 680 538 662 554
Aviation fuels 214 191 206 185
Other products 566 573 514 545
------ ----- ------ -----
2,886 2,630 2,746 2,605
International 477 440 486 472
------ ----- ------ -----
3,363 3,070 3,232 3,077
====== ===== ====== =====
Per Gallon
U.S. Average sales prices**
Automotive gasoline-wholesale $ 1.67 1.40 1.56 1.28
Automotive gasoline-retail 1.85 1.61 1.70 1.47
Distillates-wholesale 1.66 1.17 1.57 1.09
*Includes ConocoPhillips' share of equity affiliates except LUKOIL.
**Excludes excise taxes.
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