Exhibit 99
ConocoPhillips First-Quarter 2006 Interim Update
HOUSTON--(BUSINESS WIRE)--April 4, 2006--This update is intended
to give an overview of market and operating conditions experienced by
ConocoPhillips (NYSE:COP) during the first quarter of 2006. The market
indicators and company estimates may differ considerably from the
company's actual results scheduled to be reported on April 26, 2006.
Highlights -- First-Quarter 2006 vs. Fourth-Quarter 2005
-- Exploration and Production
-- Completed the acquisition of Burlington Resources.
-- Higher crude oil prices.
-- Lower U.S. natural gas prices.
-- Daily production similar to fourth quarter.
-- Refining and Marketing
-- Completed the acquisition of the Wilhelmshaven, Germany,
refinery.
-- Lower worldwide refining margins.
-- Significantly lower worldwide marketing margins.
-- Worldwide capacity utilization rate in the mid-80-percent
range.
-- Significantly higher turnaround activity.
-- LUKOIL Investment
-- Ownership of 17.1 percent at quarter end.
-- Midstream / Chemicals
-- Midstream results expected to be lower than previous
quarter.
-- Chemicals results anticipated to be higher than previous
quarter.
-- Corporate
-- Debt balance of approximately $32.2 billion, reflecting
the funding for the acquisition of Burlington Resources.
-- Cash balance of approximately $3 billion.
Exploration and Production (E&P)
The table below provides market price indicators for crude oil and
natural gas. The company's actual crude oil and natural gas price
realizations may vary from these market indicators due to quality and
location differentials, as well as to the effect of pricing lags.
Market Indicators
1Q 2006 4Q 2005 1Q 2006 vs. 1Q 2005
4Q 2005
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Dated Brent ($/bbl) $61.75 $56.90 4.85 $47.50
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WTI ($/bbl) 63.28 59.99 3.29 49.70
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ANS USWC ($/bbl) 60.87 57.87 3.00 44.86
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Henry Hub first of month
($/mcf) 9.01 13.00 (3.99) 6.27
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Source: Platts
First-quarter production on a barrel-of-oil equivalent (BOE) per
day basis, including Syncrude and excluding LUKOIL, is expected to be
similar to that of the previous quarter. Expected higher output in
Australia, Venezuela and the U.S. Lower 48, is anticipated to be
offset by lower production in Alaska, Norway and Nigeria due to
unscheduled shutdowns. In addition, ConocoPhillips did not lift
production volumes from Libya in the first quarter, resulting in an
increase in the company's underlift position.
The company expects the partial shutdown of the partner-operated
Prudhoe Bay field in Alaska to return to production in the second
quarter. The Ekofisk field in Norway was shut down for equipment
modifications and preventive maintenance and has returned to normal
operations. In addition, the partner-operated Ursa field and the
company-operated Green Canyon field returned to pre-hurricane
production levels. The company expects to lift production from Libya
in the second quarter and commence recovery of its underlift position.
First-quarter exploration expenses are expected to be lower than
the previous quarter, at approximately $125 million, primarily due to
decreased dry-hole costs and leasehold impairments.
The company completed its acquisition of Burlington Resources Inc.
on March 31. Burlington's portfolio of high-quality, long-life gas
reserves complements ConocoPhillips' portfolio and establishes the
company as a leading natural gas producer in North America. This
acquisition will not impact E&P segment earnings and operating
statistics for the quarter.
The Darwin liquefied natural gas (LNG) facility in Australia
commenced production in January, and initial deliveries of LNG to
Japan occurred during the quarter. Following the initial ramp-up
process in 2006, this facility is anticipated to meet gross contracted
sales of approximately 3 million tons of LNG per year for a period of
16 years.
Refining and Marketing (R&M)
The table below provides market indicators for regions where the
company has significant refining operations. The Weighted U.S. 3:2:1
margin is based on the geographical location and capacity of
ConocoPhillips' U.S. refineries. Realized refining margins may differ
due to the company's specific locations, configurations, crude oil
slates or operating conditions. In addition, the company's refining
configuration generally yields somewhat higher distillate volumes and
lower gasoline volumes than those implied by the market indicators
shown below.
Market Indicators ($/bbl)
1Q 2006 4Q 2005 1Q 2006 vs. 1Q 2005
4Q 2005
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Refining Margins
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East Coast WTI 3:2:1 $7.52 $9.32 (1.80) 6.40
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Gulf Coast WTI 3:2:1 8.28 10.27 (1.99) 6.37
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Mid-Continent WTI 3:2:1 9.81 11.93 (2.12) 7.92
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West Coast ANS 3:2:1 18.87 16.29 2.58 19.61
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Weighted U.S. 3:2:1 10.56 11.69 (1.13) 9.24
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NW Europe Dated Brent
3:1:2 10.18 13.68 (3.50) 11.14
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WTI/Maya differential
(trading month) 15.61 16.75 (1.14) 17.08
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U.S. Wholesale Gasoline
Marketing 0.93 3.98 (3.05) 0.16
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Source: Platts
Worldwide refining and marketing margins for the first quarter are
expected to be lower than the fourth quarter, as indicated in the
table above. Narrowing heavy-light crude oil differentials, as well as
increased turnaround activity, are expected to further decrease
refining margins. Turnaround costs are expected to be approximately
$150 million before-tax.
The company's average crude oil refining capacity utilization rate
for the first quarter is expected to be in the mid-80-percent range.
Domestically, increased turnaround activity, as well as unplanned
downtime, is expected to more than offset the partial restoration of
crude throughput at the company's 247,000-barrel-per-day Alliance
refinery located in Belle Chasse, La. During the quarter, the Alliance
refinery yield consisted primarily of intermediates rather than
finished products, further reducing refining margins relative to the
market indicator. The refinery is completing final startup activity
and is expected to return to normal operations shortly.
The company also made significant progress toward expanding its
European refining presence by completing the acquisition of the
Wilhelmshaven, Germany, refinery. A deep conversion project is planned
for the refinery to expand its production of more valuable light-end
products, such as gasoline and distillate.
Corporate
The company's debt balance at the end of the first quarter was
approximately $32.2 billion, while the cash balance was approximately
$3 billion. Corporate expenses are expected to be higher than the
previous quarter. The weighted-average diluted shares outstanding
during the first quarter is expected to be 1,404 million shares, while
diluted shares outstanding at quarter end are estimated to be 1,680
million shares. The March-ending debt balance and shares outstanding
include the acquisition of Burlington Resources Inc.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR"
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This update contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements are about
ConocoPhillips' main business segments: exploration and production,
refining and marketing, midstream and chemicals. There also are
forward-looking statements; ConocoPhillips' expected crude oil,
natural gas and natural gas liquids production and prices; expected
exploration expenses; weighted worldwide refining margins; worldwide
marketing margins; refinery utilization rates; turnaround costs;
balance sheet debt level; and average diluted shares outstanding.
These statements are based on activity from operations for the first
two months of the first quarter of 2006 and include estimated results
for March, and as such are preliminary and are estimates. All of the
forward-looking data is therefore subject to change. Actual results,
which will be reported in the company's earnings release for the first
quarter of 2006 on April 26, 2006, may differ materially from the
estimates given in this update.
Where in any forward-looking statement, the company expresses an
expectation or belief as to future results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis.
However, there can be no assurance that such expectation or belief
will result or be achieved. The actual results of operations can and
will be affected by a variety of risks and other matters, as set forth
in the company's filings with the Securities and Exchange Commission,
that could cause the stated expectation or belief to differ materially
from that stated in this update. Unless legally required,
ConocoPhillips undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Cautionary Note to U.S. Investors -- The SEC permits oil and gas
companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. Production is
distinguished from oil and gas production because SEC regulations
define Syncrude as mining-related and not part of conventional oil and
natural gas reserves. The company uses certain terms in this release,
such as "includes Syncrude" that the SEC's guidelines strictly
prohibit us from including in filings with the SEC. U.S. investors are
urged to consider closely the disclosure in the company's periodic
filings with the SEC, available from the company at 600 North Dairy
Ashford Road, Houston, Texas 77079 and the company's Web site at
www.conocophillips.com/investor/sec. This information also can be
obtained from the SEC by calling 800-SEC-0330.
CONTACT: ConocoPhillips