EXHIBIT 99.3
SUMMARY OF NET INCOME (LOSS) BY SEGMENT
Millions of Dollars
------------------------------------------------------------------------------------
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
Income (Loss) from Continuing Operations
U.S. E&P 892 966 1,107 1,325 4,290 1,181 1,181
International E&P 895 963 1,181 1,105 4,144 1,372 1,372
- ---------------------------------------------------------------------------- -----------------------------------------
Total E&P 1,787 1,929 2,288 2,430 8,434 2,553 2,553
- ---------------------------------------------------------------------------- -----------------------------------------
Midstream 385 68 88 147 688 110 110
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. R&M 570 936 1,096 805 3,407 297 297
International R&M 130 174 294 251 849 93 93
- ---------------------------------------------------------------------------- -----------------------------------------
Total R&M 700 1,110 1,390 1,056 4,256 390 390
- ---------------------------------------------------------------------------- -----------------------------------------
LUKOIL Investment 110 148 267 189 714 249 249
Chemicals 133 63 13 114 323 149 149
Emerging Businesses (8) (8) - (4) (20) 8 8
Corporate and Other (184) (179) (242) (150) (755) (168) (168)
- ---------------------------------------------------------------------------- -----------------------------------------
Consolidated 2,923 3,131 3,804 3,782 13,640 3,291 3,291
============================================================================ =========================================
Cumulative Effect of Accounting Changes
U.S. E&P - - - (2) (2) - -
International E&P - - - (2) (2) - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total E&P - - - (4) (4) - -
- ---------------------------------------------------------------------------- -----------------------------------------
Midstream - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. R&M - - - (78) (78) - -
International R&M - - - (5) (5) - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total R&M - - - (83) (83) - -
- ---------------------------------------------------------------------------- -----------------------------------------
LUKOIL Investment - - - - - - -
Chemicals - - - - - - -
Emerging Businesses - - - (1) (1) - -
Corporate and Other - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Consolidated - - - (88) (88) - -
============================================================================ =========================================
Income (Loss) from Discontinued Operations
Corporate and Other (11) 7 (4) (15) (23) - -
============================================================================ =========================================
Net Income (Loss)
U.S. E&P 892 966 1,107 1,323 4,288 1,181 1,181
International E&P 895 963 1,181 1,103 4,142 1,372 1,372
- ---------------------------------------------------------------------------- -----------------------------------------
Total E&P 1,787 1,929 2,288 2,426 8,430 2,553 2,553
- ---------------------------------------------------------------------------- -----------------------------------------
Midstream 385 68 88 147 688 110 110
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. R&M 570 936 1,096 727 3,329 297 297
International R&M 130 174 294 246 844 93 93
- ---------------------------------------------------------------------------- -----------------------------------------
Total R&M 700 1,110 1,390 973 4,173 390 390
- ---------------------------------------------------------------------------- -----------------------------------------
LUKOIL Investment 110 148 267 189 714 249 249
Chemicals 133 63 13 114 323 149 149
Emerging Businesses (8) (8) - (5) (21) 8 8
Corporate and Other (195) (172) (246) (165) (778) (168) (168)
- ---------------------------------------------------------------------------- -----------------------------------------
Consolidated 2,912 3,138 3,800 3,679 13,529 3,291 3,291
============================================================================ =========================================
Page 1 of 11
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
Millions of Dollars
------------------------------------------------------------------------------------
2005 2006
---------------------------------------- -----------------------------------------
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 1,388 1,504 1,728 2,019 6,639 1,853 1,853
International E&P 2,020 2,152 2,567 2,550 9,289 2,862 2,862
- ---------------------------------------------------------------------------- -----------------------------------------
Total E&P 3,408 3,656 4,295 4,569 15,928 4,715 4,715
- ---------------------------------------------------------------------------- -----------------------------------------
Midstream 449 107 138 208 902 173 173
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. R&M 901 1,485 1,766 1,379 5,531 512 512
International R&M 160 203 368 330 1,061 112 112
- ---------------------------------------------------------------------------- -----------------------------------------
Total R&M 1,061 1,688 2,134 1,709 6,592 624 624
- ---------------------------------------------------------------------------- -----------------------------------------
LUKOIL Investment 115 153 275 196 739 257 257
Chemicals 187 84 (3) 148 416 209 209
Emerging Businesses (13) (13) (2) (10) (38) 9 9
Corporate and Other (267) (243) (283) (199) (992) (190) (190)
- ---------------------------------------------------------------------------- -----------------------------------------
Consolidated 4,940 5,432 6,554 6,621 23,547 5,797 5,797
============================================================================ =========================================
Income from Continuing Operations
Effective Tax Rates
U.S. E&P 35.7% 35.8% 35.9% 34.4% 35.4% 36.3% 36.3%
International E&P 55.7% 55.3% 54.0% 56.7% 55.4% 52.1% 52.1%
- ---------------------------------------------------------------------------- -----------------------------------------
Total E&P 47.6% 47.2% 46.7% 46.8% 47.0% 45.9% 45.9%
- ---------------------------------------------------------------------------- -----------------------------------------
Midstream 14.3% 36.4% 36.2% 29.3% 23.7% 36.4% 36.4%
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. R&M 36.7% 37.0% 37.9% 41.6% 38.4% 42.0% 42.0%
International R&M 18.8% 14.3% 20.1% 23.9% 20.0% 17.0% 17.0%
- ---------------------------------------------------------------------------- -----------------------------------------
Total R&M 34.0% 34.2% 34.9% 38.2% 35.4% 37.5% 37.5%
- ---------------------------------------------------------------------------- -----------------------------------------
LUKOIL Investment 4.3% 3.3% 2.9% 3.6% 3.4% 3.1% 3.1%
Chemicals 28.9% 25.0% -- 23.0% 22.4% 28.7% 28.7%
Emerging Businesses 38.5% 38.5% -- 60.0% 47.4% 11.1% 11.1%
Corporate and Other 31.1% 26.3% 14.5% 24.6% 23.9% 11.6% 11.6%
- ---------------------------------------------------------------------------- -----------------------------------------
Consolidated 40.8% 42.4% 42.0% 42.9% 42.1% 43.2% 43.2%
============================================================================ =========================================
Page 2 of 11
CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX)
Millions of Dollars
------------------------------------------------------------------------------------
2005 2006
---------------------------------------- -----------------------------------------
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 90 - - - 90 - -
Property impairments - - - - - - -
Insurance premium adjustments - (5) (4) (8) (17) (2) (2)
Pending claims and settlements - 15 - (23) (8) - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total 90 10 (4) (31) 65 (2) (2)
- ---------------------------------------------------------------------------- -----------------------------------------
International E&P
Gain (loss) on asset sales - 15 - - 15 - -
Insurance premium adjustments - (10) (12) (19) (41) (10) (10)
Canada tax law change - - - 38 38 - -
Pending claims and settlements - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total - 5 (12) 19 12 (10) (10)
- ---------------------------------------------------------------------------- -----------------------------------------
Total E&P 90 15 (16) (12) 77 (12) (12)
- ---------------------------------------------------------------------------- -----------------------------------------
Midstream
Property impairments (6) (7) - - (13) - -
DEFS' sale of TEPPCO general
partnership 306 - - - 306 - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total 300 (7) - - 293 - -
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. R&M
Gain (loss) on asset sales 31 - - - 31 - -
Insurance premium adjustments - (7) (9) (14) (30) (6) (6)
Discontinuation of a marketing
incentive program - - (16) - (16) - -
Hurricanes impact on maintenance &
repairs - - - (57) (57) - -
Pending claims and settlements - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total 31 (7) (25) (71) (72) (6) (6)
- ---------------------------------------------------------------------------- -----------------------------------------
International R&M
Gain (loss) on asset sales - 25 - - 25 - -
Property impairments - - - - - - -
Insurance premium adjustments - - - - - (1) (1)
- ---------------------------------------------------------------------------- -----------------------------------------
Total - 25 - - 25 (1) (1)
- ---------------------------------------------------------------------------- -----------------------------------------
Total R&M 31 18 (25) (71) (47) (7) (7)
- ---------------------------------------------------------------------------- -----------------------------------------
LUKOIL Investment
- - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Chemicals
- - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Emerging Businesses
- - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Total - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Corporate and Other
Acquisition-related expenses - - - - - (5) (5)
Premium on early debt retirement (8) - (42) (42) (92) - -
Pending claims and settlements - - - - - (15) (15)
- ---------------------------------------------------------------------------- -----------------------------------------
Total (8) - (42) (42) (92) (20) (20)
- ---------------------------------------------------------------------------- -----------------------------------------
Total Company 413 26 (83) (125) 231 (39) (39)
============================================================================ =========================================
Page 3 of 11
CASH FLOW INFORMATION
Millions of Dollars
------------------------------------------------------------------------------------
2005 2006
---------------------------------------- -----------------------------------------
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 2,923 3,131 3,804 3,782 13,640 3,291 3,291
DD&A and property impairments 1,063 994 1,049 1,189 4,295 1,180 1,180
Dry hole costs and leasehold
impairments 109 47 55 138 349 38 38
Accretion on discounted
liabilities 48 41 46 58 193 60 60
Deferred income taxes 123 369 261 348 1,101 168 168
Undistributed equity earnings (805) (414) (463) (92) (1,774) (67) (67)
Net (gain) loss on asset
dispositions (177) (65) (22) (14) (278) (3) (3)
Other (78) (113) 192 (140) (139) (203) (203)
Net working capital changes 888 (1,224) 1,177 (595) 246 336 336
Discontinued operations (5) 2 (3) 1 (5) - -
- ---------------------------------------------------------------------------- -----------------------------------------
Net Cash Provided by
Operating Activities 4,089 2,768 6,096 4,675 17,628 4,800 4,800
- ---------------------------------------------------------------------------- -----------------------------------------
Cash Flows from Investing Activities
Capital expenditures and investments*:
E&P (1,206) (2,337) (1,475) (1,666) (6,684) (2,206) (2,206)
Midstream (1) - (838) - (839) (1) (1)
R&M (275) (360) (440) (663) (1,738) (1,635) (1,635)
LUKOIL Investment (324) (384) (815) (637) (2,160) (612) (612)
Chemicals - - - - - - -
Emerging Businesses 4 (7) (2) - (5) (12) (12)
Corporate and Other (20) (37) (56) (81) (194) (48) (48)
- ---------------------------------------------------------------------------- -----------------------------------------
Total capital expend. &
investments (1,822) (3,125) (3,626) (3,047) (11,620) (4,514) (4,514)
Acquisition of Burlington
Resources Inc.* - - - - - (14,190) (14,190)
Proceeds from asset dispositions 87 221 300 160 768 5 5
Long-term advances to/collections
from affiliates and other
investments 25 4 (58) (135) (164) (115) (115)
Discontinued operations - - - - - - -
- ---------------------------------------------------------------------------- -----------------------------------------
Net Cash Used for Investing
Activities (1,710) (2,900) (3,384) (3,022) (11,016) (18,814) (18,814)
- ---------------------------------------------------------------------------- -----------------------------------------
Cash Flows from Financing Activities
Net issuance (repayment) of debt (986) (13) (513) (1,038) (2,550) 15,324 15,324
Issuance of stock 155 108 114 25 402 40 40
Repurchase of stock (194) (382) (589) (759) (1,924) - -
Dividends (348) (432) (430) (429) (1,639) (496) (496)
Other 64 33 (10) (60) 27 (27) (27)
- ---------------------------------------------------------------------------- -----------------------------------------
Net Cash Provided by (Used for)
Financing Activities (1,309) (686) (1,428) (2,261) (5,684) 14,841 14,841
- ---------------------------------------------------------------------------- -----------------------------------------
Effect of Exchange Rate Changes (36) (62) (22) 19 (101) (33) (33)
- ---------------------------------------------------------------------------- -----------------------------------------
Net Change in Cash
and Cash Equivalents 1,034 (880) 1,262 (589) 827 794 794
Cash and cash equivalents
at beginning of period 1,387 2,421 1,541 2,803 1,387 2,214 2,214
- ---------------------------------------------------------------------------- -----------------------------------------
Cash and Cash Equivalents
at End of Period 2,421 1,541 2,803 2,214 2,214 3,008 3,008
============================================================================ =========================================
* Net of cash acquired.
Page 4 of 11
TOTAL E&P
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
E&P Net Income ($ Millions) 1,787 1,929 2,288 2,426 8,430 2,553 2,553
============================================================================ =========================================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 1,600 1,537 1,521 1,590 1,562 1,610 1,610
- ---------------------------------------------------------------------------- -----------------------------------------
E&P segment plus LUKOIL Investment
segment: 1,801 1,760 1,787 1,883 1,808 1,932 1,932
- ---------------------------------------------------------------------------- -----------------------------------------
Crude Oil and Condensate (MB/D)
Consolidated 822 780 766 777 786 777 777
Equity affiliates 120 123 124 116 121 126 126
- ---------------------------------------------------------------------------- -----------------------------------------
Total 942 903 890 893 907 903 903
============================================================================ =========================================
Sales of crude oil produced (MB/D) 940 932 883 916 918 913 913
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids (MB/D) 94 80 92 99 91 97 97
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas (MMCF/D)
Consolidated 3,295 3,191 3,099 3,468 3,263 3,554 3,554
Equity affiliates 5 7 10 3 7 11 11
- ---------------------------------------------------------------------------- -----------------------------------------
Total 3,300 3,198 3,109 3,471 3,270 3,565 3,565
============================================================================ =========================================
Canadian Syncrude (MB/D) 14 21 21 20 19 16 16
- ---------------------------------------------------------------------------- -----------------------------------------
Industry Prices (Platt's)
Crude Oil ($/bbl)
WTI spot 49.70 53.03 63.05 59.99 56.44 63.28 63.28
Brent dated 47.50 51.59 61.54 56.90 54.38 61.75 61.75
Natural Gas ($/mmbtu)
Henry Hub -- First of Month 6.27 6.74 8.53 13.00 8.64 9.01 9.01
- ---------------------------------------------------------------------------- -----------------------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated 44.89 48.88 58.49 55.06 51.74 58.97 58.97
Equity affiliates 30.38 36.11 45.25 38.90 37.79 43.38 43.38
Total 43.15 46.93 56.64 53.05 49.87 56.63 56.63
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids ($/bbl) 33.44 35.10 41.54 42.75 38.32 43.13 43.13
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas ($/mcf)
Consolidated 5.24 5.53 6.40 7.96 6.32 7.26 7.26
Equity affiliates 0.25 0.32 0.20 0.28 0.26 0.23 0.23
Total 5.24 5.52 6.38 7.94 6.30 7.24 7.24
- ---------------------------------------------------------------------------- -----------------------------------------
Exploration Charges ($ Millions)
Dry Holes 88 30 32 83 233 19 19
Lease Impairments 20 18 23 55 116 19 19
- ---------------------------------------------------------------------------- -----------------------------------------
Total Non-Cash Charges 108 48 55 138 349 38 38
Other (G&G and Lease Rentals) 63 73 85 91 312 74 74
- ---------------------------------------------------------------------------- -----------------------------------------
Total Exploration Charges 171 121 140 229 661 112 112
============================================================================ =========================================
Depreciation, Depletion and
Amortization (DD&A) ($ Millions) 819 755 823 915 3,312 910 910
- ---------------------------------------------------------------------------- -----------------------------------------
Page 5 of 11
U.S. E&P
2005 2006
---------------------------------------- -----------------------------------------
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) 892 966 1,107 1,323 4,288 1,181 1,181
============================================================================ =========================================
Alaska ($ Millions) 532 572 730 718 2,552 692 692
- ---------------------------------------------------------------------------- -----------------------------------------
Lower 48 ($ Millions) 360 394 377 605 1,736 489 489
- ---------------------------------------------------------------------------- -----------------------------------------
Production
Total U.S. (MBOE/D) 648 631 617 636 633 636 636
- ---------------------------------------------------------------------------- -----------------------------------------
Crude Oil and Condensate (MB/D)
Alaska 309 297 281 291 294 283 283
Lower 48 62 63 56 54 59 64 64
- ---------------------------------------------------------------------------- -----------------------------------------
Total 371 360 337 345 353 347 347
============================================================================ =========================================
Sales of crude oil produced (MB/D) 386 352 352 337 357 363 363
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids (MB/D)*
Alaska 24 16 18 21 20 22 22
Lower 48 27 31 30 31 30 29 29
- ---------------------------------------------------------------------------- -----------------------------------------
Total 51 47 48 52 50 51 51
============================================================================ =========================================
*Includes reinjection volumes sold
lease-to-lease: 13 1 8 13 9 14 14
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas (MMCF/D)
Alaska 185 148 173 172 169 163 163
Lower 48 1,169 1,195 1,218 1,264 1,212 1,264 1,264
- ---------------------------------------------------------------------------- -----------------------------------------
Total 1,354 1,343 1,391 1,436 1,381 1,427 1,427
============================================================================ =========================================
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Alaska
North Slope 38.93 43.92 53.30 52.34 46.95 52.92 52.92
- ---------------------------------------------------------------------------- -----------------------------------------
West Coast 44.15 49.22 58.70 57.61 52.24 58.87 58.87
- ---------------------------------------------------------------------------- -----------------------------------------
Lower 48 41.29 43.58 50.00 46.62 45.24 52.21 52.21
- ---------------------------------------------------------------------------- -----------------------------------------
Total U.S. 43.69 48.21 57.31 55.86 51.09 57.70 57.70
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids ($/bbl)
Alaska 44.33 49.20 57.11 57.58 51.30 58.88 58.88
- ---------------------------------------------------------------------------- -----------------------------------------
Lower 48 30.96 31.22 39.92 42.89 36.43 38.20 38.20
- ---------------------------------------------------------------------------- -----------------------------------------
Total U.S. 34.68 37.26 43.95 45.94 40.40 43.00 43.00
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas ($/mcf)
Alaska 2.96 2.49 2.57 3.01 2.75 3.58 3.58
- ---------------------------------------------------------------------------- -----------------------------------------
Lower 48 5.66 6.20 7.67 9.37 7.28 7.50 7.50
- ---------------------------------------------------------------------------- -----------------------------------------
Total U.S. 5.57 6.07 7.48 9.17 7.12 7.42 7.42
- ---------------------------------------------------------------------------- -----------------------------------------
Kenai, Alaska LNG Sales
Volume (MMCF/D) 132 96 123 118 117 128 128
- ---------------------------------------------------------------------------- -----------------------------------------
Sales price per MCF 5.27 5.24 5.90 6.36 5.71 6.45 6.45
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. Exploration Charges ($ Millions)
Dry Holes 74 8 (2) 3 83 8 8
Lease Impairments 10 9 9 10 38 8 8
- ---------------------------------------------------------------------------- -----------------------------------------
Total Non-Cash Charges 84 17 7 13 121 16 16
Other (G&G and Lease Rentals) 12 17 19 7 55 14 14
- ---------------------------------------------------------------------------- -----------------------------------------
Total U.S. Exploration Charges 96 34 26 20 176 30 30
============================================================================ =========================================
Alaska Only 85 13 11 1 110 18 18
- ---------------------------------------------------------------------------- -----------------------------------------
DD&A ($ Millions)
Alaska 133 134 126 142 535 132 132
Lower 48 219 172 243 231 865 251 251
- ---------------------------------------------------------------------------- -----------------------------------------
Total U.S. 352 306 369 373 1,400 383 383
============================================================================ =========================================
Page 6 of 11
INTERNATIONAL E&P
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
International E&P
Net Income ($ Millions) 895 963 1,181 1,103 4,142 1,372 1,372
============================================================================ =========================================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 952 906 904 954 929 974 974
- ---------------------------------------------------------------------------- -----------------------------------------
Crude Oil and Condensate (MB/D)
Consolidated
Norway 207 195 198 188 197 188 188
United Kingdom 61 60 56 62 60 62 62
Canada 23 23 22 22 23 22 22
China 22 25 22 23 23 25 25
Indonesia 21 16 10 13 15 14 14
Vietnam 27 26 30 37 29 31 31
Timor Sea 36 21 38 36 33 39 39
Other 54 54 53 51 53 49 49
Equity affiliates 120 123 124 116 121 126 126
- ---------------------------------------------------------------------------- -----------------------------------------
Total 571 543 553 548 554 556 556
============================================================================ =========================================
Sales of crude oil produced (MB/D) 554 580 531 579 561 550 550
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids (MB/D)
Norway 10 9 10 11 9 11 11
Canada 10 10 10 10 10 9 9
Timor Sea 17 9 20 19 16 20 20
Other 6 5 4 7 6 6 6
- ---------------------------------------------------------------------------- -----------------------------------------
Total 43 33 44 47 41 46 46
============================================================================ =========================================
Natural Gas (MMCF/D)
Consolidated
Norway 298 268 259 264 272 269 269
United Kingdom 824 741 588 851 751 851 851
Canada 417 422 429 430 425 424 424
Timor Sea 35 35 35 33 34 144 144
Indonesia 273 287 303 330 298 294 294
Vietnam 18 14 20 19 18 24 24
Other 76 81 74 105 84 121 121
Equity affiliates 5 7 10 3 7 11 11
- ---------------------------------------------------------------------------- -----------------------------------------
Total 1,946 1,855 1,718 2,035 1,889 2,138 2,138
============================================================================ =========================================
Canadian Syncrude (MB/D) 14 21 21 20 19 16 16
- ---------------------------------------------------------------------------- -----------------------------------------
Darwin, Australia LNG Sales (MMCF/D) - - - - - 136 136
- ---------------------------------------------------------------------------- -----------------------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated
Norway 45.52 50.21 60.42 56.36 53.18 61.36 61.36
United Kingdom 49.47 48.02 60.83 54.87 53.13 59.13 59.13
Canada 36.96 41.09 54.74 46.44 44.70 44.28 44.28
China 41.51 46.95 51.89 49.86 47.85 57.90 57.90
Indonesia 46.51 47.57 61.77 47.00 49.45 57.94 57.94
Vietnam 47.77 53.32 58.52 52.77 53.23 62.34 62.34
Timor Sea 47.99 50.90 59.03 52.90 52.95 60.37 60.37
Other 44.56 50.11 60.99 57.03 52.93 62.95 62.95
Equity affiliates 30.38 36.11 45.25 38.90 37.79 43.38 43.38
Total 42.77 46.16 56.19 51.41 49.09 55.92 55.92
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids ($/bbl)
Norway 30.63 28.20 37.29 33.81 32.45 42.55 42.55
Canada 37.37 37.66 44.22 49.63 42.20 46.21 46.21
Timor Sea 34.40 35.99 40.45 47.29 40.11 46.68 46.68
Other 21.34 22.30 26.63 20.30 22.17 27.16 27.16
Total 32.35 32.03 39.29 40.04 36.25 43.25 43.25
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas ($/mcf)
Consolidated
Norway 5.03 5.30 5.13 6.40 5.46 7.28 7.28
United Kingdom 5.54 5.01 4.92 7.64 5.89 8.81 8.81
Canada 5.33 6.14 7.54 9.86 7.25 6.28 6.28
Timor Sea 0.52 0.52 0.56 0.61 0.55 0.67 0.67
Indonesia 5.08 5.96 6.73 6.23 6.03 7.45 7.45
Vietnam 1.04 1.04 1.05 1.07 1.05 1.07 1.07
Other 0.70 0.59 0.66 0.72 0.67 0.82 0.82
Equity affiliates 0.25 0.32 0.20 0.28 0.26 0.23 0.23
Total 5.03 5.15 5.57 7.16 5.76 7.13 7.13
- ---------------------------------------------------------------------------- -----------------------------------------
International Exploration Charges ($ Millions)
Dry Holes 14 22 34 80 150 11 11
Lease Impairments 10 9 14 45 78 11 11
- ---------------------------------------------------------------------------- -----------------------------------------
Total Non-Cash Charges 24 31 48 125 228 22 22
Other (G&G and Lease Rentals) 51 56 66 84 257 60 60
- ---------------------------------------------------------------------------- -----------------------------------------
Total International Exploration
Charges 75 87 114 209 485 82 82
============================================================================ =========================================
DD&A ($ Millions) 467 449 454 542 1,912 527 527
- ---------------------------------------------------------------------------- -----------------------------------------
Page 7 of 11
R&M
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
R&M Net Income ($ Millions) 700 1,110 1,390 973 4,173 390 390
============================================================================ =========================================
United States ($ Millions) 570 936 1,096 727 3,329 297 297
- ---------------------------------------------------------------------------- -----------------------------------------
International ($ Millions) 130 174 294 246 844 93 93
- ---------------------------------------------------------------------------- -----------------------------------------
Market Indicators
U.S. East Coast Crack Spread ($/bbl) 6.40 8.80 14.81 9.32 9.83 7.52 7.52
U.S. Gulf Coast Crack Spread ($/bbl) 6.37 9.63 17.42 10.27 10.92 8.28 8.28
U.S. Group Central Crack Spread
($/bbl) 7.92 11.51 17.06 11.93 12.10 9.81 9.81
U.S. West Coast Crack Spread ($/bbl) 19.61 22.20 26.61 16.29 21.18 18.87 18.87
U.S. Weighted 3:2:1 Crack Spread
($/bbl) 9.24 12.35 18.51 11.69 12.95 10.56 10.56
NW Europe Crack Spread ($/bbl) 11.14 15.09 16.53 13.68 14.11 10.18 10.18
Singapore 3:2:1 Crack Spread ($/bbl) 13.23 13.95 16.70 12.43 14.08 10.58 10.58
U.S. Wholesale Gasoline Mktg Mrgn
($/bbl) 0.16 2.20 0.42 3.98 1.69 0.93 0.93
- ---------------------------------------------------------------------------- -----------------------------------------
Realized Margins
Refining Margin ($/bbl)
U.S. 10.11 11.23 14.61 12.71 12.17 10.18 10.18
International* 8.26 8.79 10.44 8.73 9.07 5.01 5.01
- ---------------------------------------------------------------------------- -----------------------------------------
Marketing Margin ($/bbl)
U.S. 0.46 2.01 0.18 2.52 1.28 0.12 0.12
International 5.61 8.56 6.80 8.62 7.43 6.07 6.07
- ---------------------------------------------------------------------------- -----------------------------------------
* 2004 and first-quarter 2005 amounts restated to include equity affiliates.
DD&A ($ Millions) 194 197 197 230 818 239 239
- ---------------------------------------------------------------------------- -----------------------------------------
Turnaround Expense ($ Millions) 108 106 53 86 353 163 163
- ---------------------------------------------------------------------------- -----------------------------------------
Eastern U.S.
Crude Oil Charge Input (MB/D) 403 414 409 416 410 354 354
Total Charge Input (MB/D) 449 454 456 446 451 359 359
Crude Oil Capacity Utilization (%) 95% 98% 97% 98% 97% 84% 84%
Clean Product Yield (%) 92% 88% 89% 91% 90% 90% 90%
- ---------------------------------------------------------------------------- -----------------------------------------
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 659 715 596 397 591 529 529
Total Charge Input (MB/D) 733 835 674 467 676 587 587
Crude Oil Capacity Utilization (%) 92% 100% 83% 55% 83% 72% 72%
Clean Product Yield (%) 73% 79% 80% 80% 78% 74% 74%
- ---------------------------------------------------------------------------- -----------------------------------------
Central U.S.
Crude Oil Charge Input (MB/D) 538 594 620 619 594 571 571
Total Charge Input (MB/D) 577 625 653 666 630 613 613
Crude Oil Capacity Utilization (%) 84% 93% 97% 97% 93% 89% 89%
Clean Product Yield (%) 86% 84% 85% 85% 85% 84% 84%
- ---------------------------------------------------------------------------- -----------------------------------------
Western U.S.
Crude Oil Charge Input (MB/D) 357 410 415 421 401 386 386
Total Charge Input (MB/D) 382 431 439 445 425 419 419
Crude Oil Capacity Utilization (%) 90% 101% 102% 104% 100% 94% 94%
Clean Product Yield (%) 80% 82% 79% 79% 80% 79% 79%
- ---------------------------------------------------------------------------- -----------------------------------------
TOTAL UNITED STATES
Crude Oil Charge Input (MB/D) 1,957 2,133 2,040 1,853 1,996 1,840 1,840
Total Charge Input (MB/D) 2,141 2,345 2,222 2,024 2,182 1,978 1,978
Crude Oil Capacity Utilization (%) 90% 98% 93% 85% 92% 83% 83%
Clean Product Yield (%) 82% 83% 83% 84% 83% 81% 81%
- ---------------------------------------------------------------------------- -----------------------------------------
Refined Products Production (MB/D)
Gasoline 968 1,071 1,030 949 1,004 890 890
Distillates 599 655 640 583 619 538 538
Aviation Fuel 166 174 153 135 157 146 146
Other 414 449 400 370 406 414 414
- ---------------------------------------------------------------------------- -----------------------------------------
Total 2,147 2,349 2,223 2,037 2,186 1,988 1,988
============================================================================ =========================================
Petroleum Products Sales (MB/D)
Gasoline 1,302 1,426 1,397 1,368 1,374 1,258 1,258
Distillates 642 680 725 653 675 626 626
Aviation Fuel 198 214 203 189 201 187 187
Other 461 566 526 521 519 517 517
- ---------------------------------------------------------------------------- -----------------------------------------
Total 2,603 2,886 2,851 2,731 2,769 2,588 2,588
============================================================================ =========================================
Page 8 of 11
R&M (continued)
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
International - Consolidated*
Crude Oil Charge Input (MB/D) 294 259 289 291 283 357 357
Total Charge Input (MB/D) 307 266 305 310 297 369 369
Crude Oil Capacity Utilization (%) 101% 89% 99% 100% 97% 94% 94%
Clean Product Yield (%) 79% 76% 82% 82% 80% 71% 71%
- ---------------------------------------------------------------------------- -----------------------------------------
International - Equity Affiliates - Net Share**
Crude Oil Charge Input (MB/D) 134 143 142 144 141 133 133
Total Charge Input (MB/D) 137 147 145 145 144 137 137
Crude Oil Capacity Utilization (%) 98% 105% 105% 106% 103% 94% 94%
Clean Product Yield (%) 83% 82% 80% 83% 82% 82% 82%
- ---------------------------------------------------------------------------- -----------------------------------------
TOTAL INTERNATIONAL
Crude Oil Charge Input (MB/D) 428 402 431 435 424 490 490
Total Charge Input (MB/D) 444 413 450 455 441 506 506
Crude Oil Capacity Utilization (%) 100% 94% 101% 102% 99% 94% 94%
Clean Product Yield (%) 80% 78% 81% 82% 80% 74% 74%
- ---------------------------------------------------------------------------- -----------------------------------------
Refined Products Production (MB/D)
Gasoline 141 115 143 152 138 142 142
Distillates 186 178 191 191 186 215 215
Aviation Fuel 21 21 24 24 22 13 13
Other 95 96 90 91 93 130 130
- ---------------------------------------------------------------------------- -----------------------------------------
Total 443 410 448 458 439 500 500
============================================================================ =========================================
Petroleum Products Sales (MB/D)
Gasoline 185 176 178 175 178 171 171
Distillates 221 212 216 224 218 262 262
Aviation Fuel 7 10 12 8 9 7 7
Other 82 79 64 83 77 109 109
- ---------------------------------------------------------------------------- -----------------------------------------
Total 495 477 470 490 482 549 549
============================================================================ =========================================
Worldwide - Including Net Share of Equity
Affiliates
Crude Oil Charge Input (MB/D) 2,385 2,535 2,471 2,288 2,420 2,330 2,330
Total Charge Input (MB/D) 2,585 2,758 2,672 2,479 2,623 2,484 2,484
Crude Oil Capacity Utilization (%) 92% 97% 95% 88% 93% 85% 85%
Clean Product Yield (%) 82% 82% 83% 84% 82% 79% 79%
- ---------------------------------------------------------------------------- -----------------------------------------
Refined Products Production (MB/D)
Gasoline 1,109 1,186 1,173 1,101 1,142 1,032 1,032
Distillates 785 833 831 774 805 753 753
Aviation Fuel 187 195 177 159 179 159 159
Other 509 545 490 461 499 544 544
- ---------------------------------------------------------------------------- -----------------------------------------
Total 2,590 2,759 2,671 2,495 2,625 2,488 2,488
============================================================================ =========================================
Petroleum Products Sales (MB/D)
Gasoline 1,487 1,602 1,575 1,543 1,552 1,429 1,429
Distillates 863 892 941 877 893 888 888
Aviation Fuel 205 224 215 197 210 194 194
Other 543 645 590 604 596 626 626
- ---------------------------------------------------------------------------- -----------------------------------------
Total 3,098 3,363 3,321 3,221 3,251 3,137 3,137
============================================================================ =========================================
* Represents our Humber refinery in the United Kingdom, the Whitegate refinery in Ireland, and, effective March 1,
2006, our Wilhelmshaven refinery in Germany.
** Represents 18.75 percent interest in a refinery complex in Karlsruhe, Germany; 16.33 percent interest in two
refineries in Kralupy and Litvinov, Czech Republic; and 47 percent interest in a refinery in Melaka, Malaysia.
Page 9 of 11
LUKOIL INVESTMENT
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
LUKOIL Investment
Net Income ($ Millions) 110 148 267 189 714 249 249
============================================================================ =========================================
Upstream
Production*
Net crude oil production (MB/D) 190 215 253 281 235 306 306
Net natural gas production (MMCF/D) 67 50 79 72 67 98 98
BOE Total (MBOE/D) 201 223 266 293 246 322 322
- ---------------------------------------------------------------------------- -----------------------------------------
* Represents our estimated net share of LUKOIL's production.
Industry Prices
Crude Oil ($/bbl)
Urals crude (CIF Mediterranean) 43.21 48.49 57.39 54.07 50.87 58.25 58.25
- ---------------------------------------------------------------------------- -----------------------------------------
Downstream
Refinery Throughput*
Crude Processed (MB/D) 92 101 138 156 122 163 163
- ---------------------------------------------------------------------------- -----------------------------------------
* Represents our estimated net share of LUKOIL's crude processed.
MIDSTREAM
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
Midstream Net Income ($ Millions) 385 68 88 147 688 110 110
============================================================================ =========================================
U.S. Equity Affiliate ($ Millions)* 359 51 76 105 591 93 93
- ---------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States 23 21 23 22 22 23 23
International 53 44 5 - 25 - -
Equity Affiliates
United States* 110 112 171 172 142 178 178
International 6 6 6 6 6 6 6
- ---------------------------------------------------------------------------- -----------------------------------------
Total 192 183 205 200 195 207 207
============================================================================ =========================================
* Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS), through June 30, 2005, and 50 percent
interest beginning in July 2005.
Natural Gas Liquids Fractionated (MB/D)
United States* 149 131 123 127 132 141 141
International 64 55 15 10 36 11 11
- ---------------------------------------------------------------------------- -----------------------------------------
Total 213 186 138 137 168 152 152
============================================================================ =========================================
* Excludes DEFS.
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated 31.95 32.49 39.60 42.70 36.68 37.64 37.64
DEFS 30.61 31.33 38.31 41.84 35.52 37.29 37.29
- ---------------------------------------------------------------------------- -----------------------------------------
* Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids
component and location mix.
DD&A ($ Millions) 9 8 7 8 32 7 7
- ---------------------------------------------------------------------------- -----------------------------------------
CHEMICALS
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
Chemicals
Net Income (Loss) ($ Millions) 133 63 13 114 323 149 149
============================================================================ =========================================
Industry Margins (Cents/Lb)*
Ethylene industry cash margin 18.11 12.76 8.78 21.06 15.18 20.48 20.48
HDPE industry contract sales margin 12.09 12.01 8.16 12.90 11.29 15.91 15.91
Styrene industry contract sales
margin 13.91 13.63 12.44 12.31 13.07 12.52 12.52
- ---------------------------------------------------------------------------- -----------------------------------------
* Prices, economics and views expressed by CMAI are strictly the opinion of CMAI and Purvin & Gertz and are based on
information collected within the public sector and on assessments by CMAI and Purvin & Gertz staff utilizing reasonable
care consistent with normal industry practice. CMAI and Purvin & Gertz make no guarantee or warranty and assume no
liability as to their use.
Page 10 of 11
EMERGING BUSINESSES
2005 2006
---------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
---------------------------------------- -----------------------------------------
Emerging Businesses
Net Income (Loss) ($ Millions) (8) (8) - (5) (21) 8 8
============================================================================ =========================================
Detail of Net Income (Loss) ($ Millions)
Technology Solutions (2) (4) (5) (5) (16) (12) (12)
Gas-to-Liquids (7) (7) (4) (5) (23) (4) (4)
Power 2 9 17 15 43 31 31
Other (1) (6) (8) (10) (25) (7) (7)
- ---------------------------------------------------------------------------- -----------------------------------------
Total (8) (8) - (5) (21) 8 8
============================================================================ =========================================
CORPORATE AND OTHER
2005 2006
---------------------------------------- -----------------------------------------
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) (195) (172) (246) (165) (778) (168) (168)
============================================================================ =========================================
Detail of Net Income (Loss) ($ Millions)
Net interest expense (101) (84) (123) (114) (422) (77) (77)
Corporate overhead (58) (46) (64) (15) (183) (26) (26)
Discontinued operations (11) 7 (4) (15) (23) - -
Acquisition-related expenses - - - - - (5) (5)
Accounting change - - - - - - -
Other (25) (49) (55) (21) (150) (60) (60)
- ---------------------------------------------------------------------------- -----------------------------------------
Total (195) (172) (246) (165) (778) (168) (168)
============================================================================ =========================================
Before-Tax Net Interest Expense ($
Millions)
Interest expense (226) (219) (223) (224) (892) (226) (226)
Capitalized interest 88 91 102 114 395 111 111
Interest revenue 25 24 28 36 113 30 30
Receivables monetization related (1) - - - (1) - -
Premium on early debt retirement (9) - (50) (51) (110) - -
- ---------------------------------------------------------------------------- -----------------------------------------
(123) (104) (143) (125) (495) (85) (85)
============================================================================ =========================================
Debt
Total Debt ($ Millions) 14,012 14,013 13,497 12,516 12,516 32,193 32,193
Debt-to-Capital Ratio 23% 22% 21% 19% 19% 30% 30%
- ---------------------------------------------------------------------------- -----------------------------------------
Page 11 of 11