EXHIBIT 99.2
Preliminary
FINANCIAL HIGHLIGHTS
Millions of Dollars
Three Months Ended
March 31
2006 2005
Revenues and other income
Sales and other operating revenues* $ 46,906 37,631
Equity in earnings of affiliates 960 1,053
Other income 61 234
------------ -----------
47,927 38,918
------------ -----------
Costs and expenses
Purchased crude oil, natural gas and products 33,455 25,572
Production and operating expenses 2,215 1,952
Selling, general and administrative expenses 566 539
Exploration expenses 112 171
Depreciation, depletion and amortization 1,180 1,041
Property impairments - 22
Taxes other than income taxes* 4,387 4,488
Accretion on discounted liabilities 60 48
Interest and debt expense 115 138
Foreign currency transaction losses (gains) 22 (3)
Minority interests 18 10
------------ -----------
42,130 33,978
------------ -----------
Income from continuing operations before income taxes 5,797 4,940
Provision for income taxes 2,506 2,017
------------ -----------
Income from continuing operations 3,291 2,923
Loss from discontinued operations - (11)
------------ -----------
Net income $ 3,291 2,912
============ ===========
Income (loss) per share of common stock (dollars)**
Basic
Continuing operations $ 2.38 2.09
Discontinued operations - (0.01)
------------ -----------
Net income $ 2.38 2.08
============ ===========
Diluted
Continuing operations $ 2.34 2.06
Discontinued operations - (0.01)
------------ -----------
Net income $ 2.34 2.05
============ ===========
Average common shares outstanding (in thousands)**
Basic 1,382,925 1,397,893
Diluted 1,404,704 1,420,372
*Includes excise taxes on petroleum products sales: $3,990 4,155
**Per-share amounts and average number of shares outstanding in the 2005 quarter
reflect a two-for-one stock split effected as a 100 percent stock dividend on
June 1, 2005.
1-1
Preliminary
SELECTED FINANCIAL DATA
Millions of Dollars
Three Months Ended
March 31
2006 2005
INCOME (LOSS) FROM CONTINUING OPERATIONS
E&P
United States $ 1,181 892
International 1,372 895
------------ -----------
Total E&P 2,553 1,787
------------ -----------
Midstream 110 385
------------ -----------
R&M
United States 297 570
International 93 130
------------ -----------
Total R&M 390 700
------------ -----------
LUKOIL Investment 249 110
Chemicals 149 133
Emerging Businesses 8 (8)
Corporate and other (168) (184)
------------ -----------
Consolidated $ 3,291 2,923
============ ===========
INCOME (LOSS) FROM DISCONTINUED OPERATIONS
Corporate and other - (11)
SUMMARY OF NET INCOME (LOSS)
E&P
United States $ 1,181 892
International 1,372 895
------------ -----------
Total E&P 2,553 1,787
------------ -----------
Midstream 110 385
------------ -----------
R&M
United States 297 570
International 93 130
------------ -----------
Total R&M 390 700
------------ -----------
LUKOIL Investment 249 110
Chemicals 149 133
Emerging Businesses 8 (8)
Corporate and other (168) (195)
------------ -----------
Net Income $ 3,291 2,912
============ ===========
1-2
Preliminary
SELECTED FINANCIAL DATA
Three Months Ended
March 31
2006 2005
INCOME FROM CONTINUING OPERATIONS
Effective tax rate % 43.2 % 40.8
Millions of Dollars
FOREIGN CURRENCY GAINS (LOSSES) AFTER-TAX
E&P $ 7 12
Midstream - -
R&M 6 (18)
LUKOIL Investment - -
Chemicals - -
Emerging Businesses - -
Corporate and other (8) 7
---------- ----------
$ 5 1
========== ==========
CASH FLOWS FROM OPERATING ACTIVITIES
Income from continuing operations $ 3,291 2,923
Depreciation, depletion and amortization 1,180 1,041
Property impairments - 22
Dry hole costs and leasehold impairment 38 109
Accretion on discounted liabilities 60 48
Deferred income taxes 168 123
Undistributed equity earnings (67) (805)
Net gain on asset dispositions (3) (177)
Other (203) (78)
Working capital changes 336 888
---------- ----------
Net cash provided by continuing operations 4,800 4,094
Net cash provided by discontinued operations - (5)
---------- ----------
Net cash provided by operating activities $ 4,800 4,089
========== ==========
CAPITAL EXPENDITURES AND INVESTMENTS
E&P
United States $ 419 322
International 1,787 884
---------- ----------
2,206 1,206
Midstream 1 1
R&M 1,635 275
LUKOIL Investment 612 324
Chemicals - -
Emerging Businesses 12 (4)
Corporate and other 48 20
---------- ----------
$ 4,514 1,822
========== ==========
OTHER
At March 31, 2006 At December 31, 2005
Total debt $32,193 12,516
Common stockholders' equity $72,193 52,731
1-3
Preliminary
OPERATING HIGHLIGHTS
BY SEGMENT
Three Months Ended
March 31
2006 2005
Thousands of Barrels Daily
E&P
Crude oil produced
United States
Alaska 283 309
Lower 48 64 62
------------- ------------
347 371
Norway 188 207
United Kingdom 62 61
Canada 22 23
China 25 22
Indonesia 14 21
Vietnam 31 27
Timor Sea 39 36
Other 49 54
------------- ------------
Total consolidated 777 822
Equity affiliates 126 120
------------- ------------
Total Worldwide 903 942
============= ============
Syncrude 16 14
============= ============
Natural gas liquids produced
United States
Alaska* 22 24
Lower 48 29 27
------------- ------------
51 51
Norway 11 10
Canada 9 10
Timor Sea 20 17
Other 6 6
------------- ------------
Total Worldwide 97 94
============= ============
*Includes reinjected volumes sold lease-to-lease. 14 13
Millions of Cubic Feet Daily
Natural gas produced*
United States
Alaska 163 185
Lower 48 1,264 1,169
------------- ------------
1,427 1,354
Norway 269 298
United Kingdom 851 824
Canada 424 417
Timor Sea 144 35
Indonesia 294 273
Vietnam 24 18
Other 121 76
------------- ------------
Total consolidated 3,554 3,295
Equity affiliates 11 5
------------- ------------
Total Worldwide 3,565 3,300
============= ============
*Represents quantities available for sale. Excludes gas equivalent of NGL shown above.
Liquefied natural gas sales 264 132
LUKOIL Investment
Production (MBOE/D)* 322 201
Refinery crude oil throughput (MB/D)* 163 92
*Represents our estimated net share of LUKOIL
1-4
Preliminary
OPERATING HIGHLIGHTS
Three Months Ended
March 31
2006 2005
E&P
Per Unit
Average sales prices
Crude oil (per barrel)
United States
Alaska $ 58.87 44.15
Lower 48 52.21 41.29
Total U.S. 57.70 43.69
International 60.08 45.93
Total consolidated 58.97 44.89
Equity affiliates * 43.38 30.38
Total Worldwide 56.63 43.15
Natural gas-lease (per MCF)
United States
Alaska 3.58 2.96
Lower 48 7.50 5.66
Total U.S. 7.42 5.57
International 7.16 5.03
Total consolidated 7.26 5.24
Equity affiliates * 0.23 0.25
Total Worldwide 7.24 5.24
*Excludes our equity share of LUKOIL reported in the LUKOIL Investment segment
Midstream
Thousands of Barrels Daily
Natural gas liquids extracted
Consolidated
United States 23 23
International - 53
Equity affiliates
United States** 178 110
International 6 6
----------- -----------
207 192
=========== ===========
**Represents 30.3 percent interest in Duke Energy Field Services LLC (DEFS), through
June 30, 2005, and 50 percent interest beginning in July 2005.
Per Barrel
U.S. product prices
Weighted average NGL**
Consolidated $ 37.64 31.95
DEFS 37.29 30.61
**Prices are based on index prices from the Mont Belvieu and Conway market hubs that are
weighted by naural-gas-liquids component and location mix.
1-5
Preliminary
OPERATING HIGHLIGHTS
Three Months Ended
March 31
2006 2005
Thousands of Barrels Daily
R&M
United States
Crude oil capacity 2,208 2,173
Crude oil runs 1,840 1,957
Refinery production 1,988 2,147
International*
Crude oil capacity 523 428
Crude oil runs 490 428
Refinery production 500 443
U.S. Petroleum products outside sales
Gasoline 1,258 1,302
Distillates 626 642
Aviation fuels 187 198
Other products 517 461
------------ -----------
2,588 2,603
------------ -----------
International 549 495
------------ -----------
3,137 3,098
============ ===========
Per Gallon
U.S. Average sales prices**
Automotive gasoline-wholesale $ 1.79 1.44
Automotive gasoline-retail 1.90 1.55
Distillates-wholesale 1.89 1.48
*Includes ConocoPhillips' share of equity affiliates.
**Excludes excise taxes.
1-6