Exhibit 99.3
CONOCOPHILLIPS
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 1,300 995 872 4,348
International E&P 895 963 1,181 1,105 4,144 1,372 2,004 909 1,215 5,500
- ----------------------------------------------------------------------------------- ------------------------------------------
Total E&P 1,787 1,929 2,288 2,430 8,434 2,553 3,304 1,904 2,087 9,848
- ----------------------------------------------------------------------------------- ------------------------------------------
Midstream 385 68 88 147 688 110 108 169 89 476
- ----------------------------------------------------------------------------------- ------------------------------------------
U.S. R&M 570 936 1,096 805 3,407 297 1,433 1,444 741 3,915
International R&M 130 174 294 251 849 93 275 20 178 566
- ----------------------------------------------------------------------------------- ------------------------------------------
Total R&M 700 1,110 1,390 1,056 4,256 390 1,708 1,464 919 4,481
- ----------------------------------------------------------------------------------- ------------------------------------------
LUKOIL Investment 110 148 267 189 714 249 387 487 302 1,425
Chemicals 133 63 13 114 323 149 103 142 98 492
Emerging Businesses (8) (8) - (4) (20) 8 (12) 11 8 15
Corporate and Other (184) (179) (242) (150) (755) (168) (412) (301) (306) (1,187)
- ----------------------------------------------------------------------------------- ------------------------------------------
Consolidated 2,923 3,131 3,804 3,782 13,640 3,291 5,186 3,876 3,197 15,550
=================================================================================== ==========================================
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 1,300 995 872 4,348
International E&P 895 963 1,181 1,103 4,142 1,372 2,004 909 1,215 5,500
- ----------------------------------------------------------------------------------- ------------------------------------------
Total E&P 1,787 1,929 2,288 2,426 8,430 2,553 3,304 1,904 2,087 9,848
- ----------------------------------------------------------------------------------- ------------------------------------------
Midstream 385 68 88 147 688 110 108 169 89 476
- ----------------------------------------------------------------------------------- ------------------------------------------
U.S. R&M 570 936 1,096 727 3,329 297 1,433 1,444 741 3,915
International R&M 130 174 294 246 844 93 275 20 178 566
- ----------------------------------------------------------------------------------- ------------------------------------------
Total R&M 700 1,110 1,390 973 4,173 390 1,708 1,464 919 4,481
- ----------------------------------------------------------------------------------- ------------------------------------------
LUKOIL Investment 110 148 267 189 714 249 387 487 302 1,425
Chemicals 133 63 13 114 323 149 103 142 98 492
Emerging Businesses (8) (8) - (5) (21) 8 (12) 11 8 15
Corporate and Other (195) (172) (246) (165) (778) (168) (412) (301) (306) (1,187)
- ----------------------------------------------------------------------------------- ------------------------------------------
Consolidated 2,912 3,138 3,800 3,679 13,529 3,291 5,186 3,876 3,197 15,550
=================================================================================== ==========================================
Page 1 of 12
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 2,062 1,598 1,380 6,893
International E&P 2,020 2,152 2,567 2,550 9,289 2,862 3,814 3,460 2,948 13,084
- -------------------------------------------------------------------------------- --------------------------------------------
Total E&P 3,408 3,656 4,295 4,569 15,928 4,715 5,876 5,058 4,328 19,977
- -------------------------------------------------------------------------------- --------------------------------------------
Midstream 449 107 138 208 902 173 187 214 150 724
- -------------------------------------------------------------------------------- --------------------------------------------
U.S. R&M 901 1,485 1,766 1,379 5,531 512 2,260 2,282 1,195 6,249
International R&M 160 203 368 330 1,061 112 343 107 222 784
- -------------------------------------------------------------------------------- --------------------------------------------
Total R&M 1,061 1,688 2,134 1,709 6,592 624 2,603 2,389 1,417 7,033
- -------------------------------------------------------------------------------- --------------------------------------------
LUKOIL Investment 115 153 275 196 739 257 398 496 311 1,462
Chemicals 187 84 (3) 148 416 209 134 191 128 662
Emerging Businesses (13) (13) (2) (10) (38) 9 (20) 14 11 14
Corporate and Other (267) (243) (283) (199) (992) (190) (496) (425) (428) (1,539)
- -------------------------------------------------------------------------------- --------------------------------------------
Consolidated 4,940 5,432 6,554 6,621 23,547 5,797 8,682 7,937 5,917 28,333
================================================================================ ============================================
Income from Continuing Operations
Effective Tax Rates
U.S. E&P 35.7% 35.8% 35.9% 34.4% 35.4% 36.3% 37.0% 37.7% 36.8% 36.9%
International E&P 55.7% 55.3% 54.0% 56.7% 55.4% 52.1% 47.5% 73.7% 58.8% 58.0%
- -------------------------------------------------------------------------------- --------------------------------------------
Total E&P 47.6% 47.2% 46.7% 46.8% 47.0% 45.9% 43.8% 62.4% 51.8% 50.7%
- -------------------------------------------------------------------------------- --------------------------------------------
Midstream 14.3% 36.4% 36.2% 29.3% 23.7% 36.4% 42.2% 21.0% 40.7% 34.3%
- -------------------------------------------------------------------------------- --------------------------------------------
U.S. R&M 36.7% 37.0% 37.9% 41.6% 38.4% 42.0% 36.6% 36.7% 38.0% 37.3%
International R&M 18.8% 14.3% 20.1% 23.9% 20.0% 17.0% 19.8% 81.3% 19.8% 27.8%
- -------------------------------------------------------------------------------- --------------------------------------------
Total R&M 34.0% 34.2% 34.9% 38.2% 35.4% 37.5% 34.4% 38.7% 35.1% 36.3%
- -------------------------------------------------------------------------------- --------------------------------------------
LUKOIL Investment 4.3% 3.3% 2.9% 3.6% 3.4% 3.1% 2.8% 1.8% 2.9% 2.5%
Chemicals 28.9% 25.0% -- 23.0% 22.4% 28.7% 23.1% 25.7% 23.4% 25.7%
Emerging Businesses 38.5% 38.5% -- 60.0% 47.4% 11.1% 40.0% 21.4% 27.3% -7.1%
Corporate and Other 31.1% 26.3% 14.5% 24.6% 23.9% 11.6% 16.9% 29.2% 28.5% 22.9%
- -------------------------------------------------------------------------------- --------------------------------------------
Consolidated 40.8% 42.4% 42.0% 42.9% 42.1% 43.2% 40.3% 51.2% 46.0% 45.1%
================================================================================ ============================================
Page 2 of 12
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 - 15 - 33 48
Impairments - - - - - - (26) - (10) (36)
Insurance premium adjustments - (5) (4) (8) (17) (2) - (5) (4) (11)
Pending claims and settlements - 15 - (23) (8) - - 18 - 18
Business interruption insurance claims recovery - - - - - - - 15 - 15
Enacted tax legislation - - - - - - 2 - - 2
- -------------------------------------------------------------------------------------- --------------------------------------
Total 90 10 (4) (31) 65 (2) (9) 28 19 36
- -------------------------------------------------------------------------------------- --------------------------------------
International E&P
Gain (loss) on asset sales - 15 - - 15 - 25 - - 25
Insurance premium adjustments - (10) (12) (19) (41) (10) - (10) (8) (28)
International tax law changes - - - 38 38 - 401 (270) (31) 100
Impairments - - - - - - - (4) (104) (108)
Business interruption insurance claims recovery - - - - - - - 11 3 14
Pending claims and settlements - - - - - - - - 25 25
- -------------------------------------------------------------------------------------- --------------------------------------
Total - 5 (12) 19 12 (10) 426 (273) (115) 28
- -------------------------------------------------------------------------------------- --------------------------------------
Total E&P 90 15 (16) (12) 77 (12) 417 (245) (96) 64
- -------------------------------------------------------------------------------------- --------------------------------------
Midstream
Impairments (6) (7) - - (13) - - - - -
Business interruption insurance claims recovery - - - - - - - - 5 5
DCP Midstream's sale of TEPPCO general ptnr 306 - - - 306 - - 30 - 30
Enacted tax legislation - - - - - - (6) - - (6)
- -------------------------------------------------------------------------------------- --------------------------------------
Total 300 (7) - - 293 - (6) 30 5 29
- -------------------------------------------------------------------------------------- --------------------------------------
U.S. R&M
Gain (loss) on asset sales 31 - - - 31 - - - - -
Impairments - - - - - - - (35) (192) (227)
Insurance premium adjustments - (7) (9) (14) (30) (6) - (7) (6) (19)
Discontinuation of a marketing
incentive program - - (16) - (16) - - - - -
Hurricanes impact on maintenance & repairs - - - (57) (57) - - - - -
Business interruption insurance claims recovery - - - - - - - 111 - 111
Pending claims and settlements - - - - - - - - - -
Enacted tax legislation - - - - - - 34 - - 34
- -------------------------------------------------------------------------------------- --------------------------------------
Total 31 (7) (25) (71) (72) (6) 34 69 (198) (101)
- -------------------------------------------------------------------------------------- --------------------------------------
International R&M
Gain (loss) on asset sales - 25 - - 25 - - - - -
Impairments - - - - - - - (214) - (214)
Insurance premium adjustments - - - - - (1) - (1) (1) (3)
- -------------------------------------------------------------------------------------- --------------------------------------
Total - 25 - - 25 (1) - (215) (1) (217)
- -------------------------------------------------------------------------------------- --------------------------------------
Total R&M 31 18 (25) (71) (47) (7) 34 (146) (199) (318)
- -------------------------------------------------------------------------------------- --------------------------------------
LUKOIL Investment
Ownership interest adjustment - - - - - - - 23 - 23
- -------------------------------------------------------------------------------------- --------------------------------------
Total - - - - - - - 23 - 23
- -------------------------------------------------------------------------------------- --------------------------------------
Chemicals
Business interruption insurance claims recovery - - - - - - - 7 13 20
Asset retirements recorded by CPChem - - - - - - - - (16) (16)
Enacted tax legislation - - - - - - (5) - - (5)
- -------------------------------------------------------------------------------------- --------------------------------------
Total - - - - - - (5) 7 (3) (1)
- -------------------------------------------------------------------------------------- --------------------------------------
Emerging Businesses
Property write-down - - - - - - (14) - - (14)
- -------------------------------------------------------------------------------------- --------------------------------------
Total - - - - - - (14) - - (14)
- -------------------------------------------------------------------------------------- --------------------------------------
Corporate and Other
Acquisition-related expenses - - - - - (5) (39) (32) (22) (98)
Premium on early debt retirement (8) - (42) (42) (92) - - - - -
Pending claims and settlements - - - - - (15) - - - (15)
Canada tax law change - - - - - - (10) - - (10)
- -------------------------------------------------------------------------------------- --------------------------------------
Total (8) - (42) (42) (92) (20) (49) (32) (22) (123)
- -------------------------------------------------------------------------------------- --------------------------------------
Total Company 413 26 (83) (125) 231 (39) 377 (363) (315) (340)
====================================================================================== ======================================
Page 3 of 12
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
Net income 2,912 3,138 3,800 3,679 13,529 3,291 5,186 3,876 3,197 15,550
DD&A and impairments 1,063 994 1,049 1,189 4,295 1,180 2,015 2,404 2,368 7,967
Dry hole costs and
leasehold impairments 109 47 55 138 349 38 47 56 210 351
Accretion on discounted liabilities 48 41 46 58 193 60 73 74 74 281
Deferred income taxes 123 369 261 348 1,101 168 (390) 495 (56) 217
Undistributed equity earnings (805) (414) (463) (92) (1,774) (67) (687) (253) 62 (945)
Net gain on asset dispositions (177) (65) (22) (14) (278) (3) (53) (8) (52) (116)
Loss from discontinued operations 11 (7) 4 15 23 - - - - -
Cumulative effect of
changes in acctg princ - - - 88 88 - - - - -
Other (78) (113) 192 (140) (139) (203) 189 (282) 95 (201)
Net working capital changes 888 (1,224) 1,177 (595) 246 336 (1,536) (127) (261) (1,588)
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 4,844 6,235 5,637 21,516
- ------------------------------------------------------------------------------------- ----------------------------------------
Cash Flows from Investing
Activities
Capital expenditures
and investments*:
E&P (1,206) (2,337) (1,475) (1,666) (6,684) (2,206) (2,172)(2,454) (2,681) (9,513)
Midstream (1) - (838) - (839) (1) (1) - (2) (4)
R&M (275) (360) (440) (663) (1,738) (1,635) (475) (374) (532) (3,016)
LUKOIL Investment (324) (384) (815) (637) (2,160) (612) (648) (702) (753) (2,715)
Chemicals - - - - - - - - - -
Emerging Businesses 4 (7) (2) - (5) (12) (28) (6) (37) (83)
Corporate and Other (20) (37) (56) (81) (194) (48) (78) (61) (78) (265)
- ------------------------------------------------------------------------------------- ----------------------------------------
Total capital expend.
& investments (1,822) (3,125) (3,626) (3,047) (11,620) (4,514) (3,402)(3,597) (4,083) (15,596)
Acquisition of Burlington
Resources Inc.* - - - - - (14,190) (94) (1) - (14,285)
Proceeds from asset dispositions 87 221 300 160 768 5 68 173 299 545
Long-term advances
to/collections from
affiliates and other investments 25 4 (58) (135) (164) (115) (151) (251) (140) (657)
Discontinued operations - - - - - - - - -
- ------------------------------------------------------------------------------------- ----------------------------------------
Net Cash Used for Investing
Activities (1,710) (2,900) (3,384) (3,022) (11,016) (18,814) (3,579)(3,676) (3,924) (29,993)
- ------------------------------------------------------------------------------------- ----------------------------------------
Cash Flows from
Financing Activities
Net issuance (repayment) of debt (986) (13) (513) (1,038) (2,550) 15,324 (2,756)(1,630) (706) 10,232
Issuance of stock 155 108 114 25 402 40 64 41 75 220
Repurchase of stock (194) (382) (589) (759) (1,924) - (425) (250) (250) (925)
Dividends (348) (432) (430) (429) (1,639) (496) (595) (593) (593) (2,277)
Other 64 33 (10) (60) 27 (27) (20) (76) (62) (185)
- ------------------------------------------------------------------------------------- ----------------------------------------
Net Cash Provided by
(Used for)
Financing Activities (1,309) (686) (1,428) (2,261) (5,684) 14,841 (3,732)(2,508) (1,536) 7,065
- ------------------------------------------------------------------------------------- ----------------------------------------
Effect of Exchange Rate Changes (36) (62) (22) 19 (101) (33) 113 (9) (56) 15
- ------------------------------------------------------------------------------------- ----------------------------------------
Net Change in Cash
and Cash Equivalents 1,034 (880) 1,262 (589) 827 794 (2,354) 42 121 (1,397)
Cash and cash equivalents
at beginning of period 1,387 2,421 1,541 2,803 1,387 2,214 3,008 654 696 2,214
- ------------------------------------------------------------------------------------- ----------------------------------------
Cash and Cash Equivalents
at End of Period 2,421 1,541 2,803 2,214 2,214 3,008 654 696 817 817
===================================================================================== ========================================
* Net of cash acquired.
Page 4 of 12
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 3,304 1,904 2,087 9,848
============================================================================= ============================================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 1,600 1,537 1,521 1,590 1,562 1,610 2,134 2,036 2,047 1,957
- ----------------------------------------------------------------------------- --------------------------------------------
E&P segment plus LUKOIL Investment
segment: 1,801 1,760 1,787 1,883 1,808 1,932 2,537 2,472 2,485 2,358
- ----------------------------------------------------------------------------- --------------------------------------------
Crude Oil and Condensate (MB/D)
Consolidated 822 780 766 777 786 777 924 865 859 856
Equity affiliates 120 123 124 116 121 126 121 104 113 116
- ----------------------------------------------------------------------------- --------------------------------------------
Total 942 903 890 893 907 903 1,045 969 972 972
============================================================================= ============================================
Sales of crude oil produced (MB/D) 940 932 883 916 918 913 1,040 953 988 973
- ----------------------------------------------------------------------------- --------------------------------------------
Natural Gas Liquids (MB/D) 94 80 92 99 91 97 152 146 150 136
- -----------------------------------------------------------------------------------------------------------------------------
Natural Gas (MMCF/D)
Consolidated 3,295 3,191 3,099 3,468 3,263 3,554 5,498 5,379 5,387 4,961
Equity affiliates 5 7 10 3 7 11 10 8 7 9
- ----------------------------------------------------------------------------- --------------------------------------------
Total 3,300 3,198 3,109 3,471 3,270 3,565 5,508 5,387 5,394 4,970
============================================================================= ============================================
Canadian Syncrude (MB/D) 14 21 21 20 19 16 19 23 26 21
- ----------------------------------------------------------------------------- --------------------------------------------
Industry Prices (Platt's)
Crude Oil ($/bbl)
WTI spot 49.70 53.03 63.05 59.99 56.44 63.28 70.40 70.38 59.94 66.00
Brent dated 47.50 51.59 61.54 56.90 54.38 61.75 69.62 69.49 59.68 65.14
Natural Gas ($/mmbtu)
Henry Hub -- First of Month 6.27 6.74 8.53 13.00 8.64 9.01 6.80 6.58 6.56 7.24
- ----------------------------------------------------------------------------- --------------------------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated 44.89 48.88 58.49 55.06 51.74 58.97 65.89 67.37 56.87 62.39
Equity affiliates 30.38 36.11 45.25 38.90 37.79 43.38 52.28 46.98 41.79 46.01
Total 43.15 46.93 56.64 53.05 49.87 56.63 64.34 65.04 55.10 60.37
- ----------------------------------------------------------------------------- --------------------------------------------
Natural Gas Liquids ($/bbl) 33.44 35.10 41.54 42.75 38.32 43.13 41.75 43.62 38.23 41.50
- ----------------------------------------------------------------------------- --------------------------------------------
Natural Gas ($/mcf)
Consolidated 5.24 5.53 6.40 7.96 6.32 7.26 5.86 5.92 6.13 6.20
Equity affiliates 0.25 0.32 0.20 0.28 0.26 0.23 0.36 0.32 0.32 0.30
Total 5.24 5.52 6.38 7.94 6.30 7.24 5.85 5.91 6.12 6.19
- ----------------------------------------------------------------------------- --------------------------------------------
Exploration Charges ($ Millions)
Dry Holes 88 30 32 83 233 19 15 18 142 194
Lease Impairments 20 18 23 55 116 19 33 37 68 157
- ----------------------------------------------------------------------------- --------------------------------------------
Total Non-Cash Charges 108 48 55 138 349 38 48 55 210 351
Other (G&G and Lease Rentals) 63 73 85 91 312 74 86 142 181 483
- ----------------------------------------------------------------------------- --------------------------------------------
Total Exploration Charges 171 121 140 229 661 112 134 197 391 834
============================================================================= ============================================
Depreciation, Depletion and
Amortization (DD&A) ($ Millions) 819 755 823 915 3,312 910 1,659 1,860 1,703 6,132
- ----------------------------------------------------------------------------- --------------------------------------------
Page 5 of 12
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 1,300 995 872 4,348
============================================================================== ==========================================
Alaska ($ Millions) 532 572 730 718 2,552 692 760 425 470 2,347
- ------------------------------------------------------------------------------ ------------------------------------------
Lower 48 ($ Millions) 360 394 377 605 1,736 489 540 570 402 2,001
- ------------------------------------------------------------------------------ ------------------------------------------
Production
Total U.S. (MBOE/D) 648 631 617 636 633 636 894 846 856 808
- ------------------------------------------------------------------------------ ------------------------------------------
Crude Oil and Condensate (MB/D)
Alaska 309 297 281 291 294 283 279 234 257 263
Lower 48 62 63 56 54 59 64 120 119 113 104
- ------------------------------------------------------------------------------ ------------------------------------------
Total 371 360 337 345 353 347 399 353 370 367
============================================================================== ==========================================
Sales of crude oil produced (MB/D) 386 352 352 337 357 363 398 355 371 371
- ------------------------------------------------------------------------------ ------------------------------------------
Natural Gas Liquids (MB/D)*
Alaska 24 16 18 21 20 22 20 11 17 17
Lower 48 27 31 30 31 30 29 70 75 72 62
- ------------------------------------------------------------------------------ ------------------------------------------
Total 51 47 48 52 50 51 90 86 89 79
============================================================================== ==========================================
*Includes reinjection volumes
sold lease-to-lease: 13 1 8 13 9 14 14 7 9 11
- ------------------------------------------------------------------------------ ------------------------------------------
Natural Gas (MMCF/D)
Alaska 185 148 173 172 169 163 163 123 131 145
Lower 48 1,169 1,195 1,218 1,264 1,212 1,264 2,265 2,320 2,250 2,028
- ------------------------------------------------------------------------------ ------------------------------------------
Total 1,354 1,343 1,391 1,436 1,381 1,427 2,428 2,443 2,381 2,173
============================================================================== ==========================================
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Alaska
North Slope 38.93 43.92 53.30 52.34 46.95 52.92 59.89 62.85 51.11 58.43
- ------------------------------------------------------------------------------ ------------------------------------------
West Coast 44.15 49.22 58.70 57.61 52.24 58.87 66.02 69.66 57.00 62.66
- ------------------------------------------------------------------------------ ------------------------------------------
Lower 48 41.29 43.58 50.00 46.62 45.24 52.21 59.63 62.45 51.26 57.04
- ------------------------------------------------------------------------------ ------------------------------------------
Total U.S. 43.69 48.21 57.31 55.86 51.09 57.70 64.09 67.25 55.26 61.09
- ------------------------------------------------------------------------------ ------------------------------------------
Natural Gas Liquids ($/bbl)
Alaska 44.33 49.20 57.11 57.58 51.30 58.88 65.25 67.12 57.03 61.06
- ------------------------------------------------------------------------------ ------------------------------------------
Lower 48 30.96 31.22 39.92 42.89 36.43 38.20 38.29 41.34 34.51 38.10
- ------------------------------------------------------------------------------ ------------------------------------------
Total U.S. 34.68 37.26 43.95 45.94 40.40 43.00 40.45 42.68 36.74 40.35
- ------------------------------------------------------------------------------ ------------------------------------------
Natural Gas ($/mcf)
Alaska 2.96 2.49 2.57 3.01 2.75 3.58 3.42 3.36 4.05 3.59
- ------------------------------------------------------------------------------ ------------------------------------------
Lower 48 5.66 6.20 7.67 9.37 7.28 7.50 5.81 6.00 5.85 6.14
- ------------------------------------------------------------------------------ ------------------------------------------
Total U.S. 5.57 6.07 7.48 9.17 7.12 7.42 5.78 5.98 5.84 6.11
- ------------------------------------------------------------------------------ ------------------------------------------
Kenai, Alaska LNG Sales
Volume (MMCF/D) 132 96 123 118 117 128 126 110 88 113
- ------------------------------------------------------------------------------ ------------------------------------------
Sales price per MCF 5.27 5.24 5.90 6.36 5.71 6.45 5.16 6.16 6.33 6.00
- ------------------------------------------------------------------------------ ------------------------------------------
U.S. Exploration Charges ($ Millions)
Dry Holes 74 8 (2) 3 83 8 3 8 67 86
Lease Impairments 10 9 9 10 38 8 15 13 46 82
- ------------------------------------------------------------------------------ ------------------------------------------
- ------------------------------------------------------------------------------ ------------------------------------------
Total Non-Cash Charges 84 17 7 13 121 16 18 21 113 168
Other (G&G and Lease Rentals) 12 17 19 7 55 14 1 66 55 136
- ------------------------------------------------------------------------------ ------------------------------------------
Total U.S. Exploration Charges 96 34 26 20 176 30 19 87 168 304
============================================================================== ==========================================
Alaska Only 85 13 11 1 110 18 (7) 50 21 82
- ------------------------------------------------------------------------------ ------------------------------------------
DD&A ($ Millions)
Alaska 133 134 126 142 535 132 135 137 151 555
Lower 48 219 172 243 231 865 251 634 784 623 2,292
- ------------------------------------------------------------------------------ ------------------------------------------
Total U.S. 352 306 369 373 1,400 383 769 921 774 2,847
============================================================================== ==========================================
Page 6 of 12
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 2,004 909 1,215 5,500
================================================================================ ========================================
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 952 906 904 954 929 974 1,240 1,190 1,191 1,149
- -------------------------------------------------------------------------------- ----------------------------------------
Crude Oil and Condensate (MB/D)
Consolidated
Norway 207 195 198 188 197 188 192 190 185 189
United Kingdom 61 60 56 62 60 62 57 50 56 56
Canada 23 23 22 22 23 22 27 26 27 25
China 22 25 22 23 23 25 34 36 36 33
Indonesia 21 16 10 13 15 14 14 11 10 12
Vietnam 27 26 30 37 29 31 22 24 23 25
Timor Sea 36 21 38 36 33 39 39 40 27 36
Libya - - - - - - 74 71 56 50
Other 54 54 53 51 53 49 66 64 69 63
Equity affiliates 120 123 124 116 121 126 121 104 113 116
- -------------------------------------------------------------------------------- ----------------------------------------
Total 571 543 553 548 554 556 646 616 602 605
================================================================================ ========================================
Sales of crude oil produced (MB/D) 554 580 531 579 561 550 642 598 617 602
- -------------------------------------------------------------------------------- ----------------------------------------
Natural Gas Liquids (MB/D)
Norway 10 9 10 11 9 11 8 9 8 9
Canada 10 10 10 10 10 9 30 28 31 25
Timor Sea 17 9 20 19 16 20 20 20 15 18
Other 6 5 4 7 6 6 4 3 7 5
- -------------------------------------------------------------------------------- ----------------------------------------
Total 43 33 44 47 41 46 62 60 61 57
================================================================================ ========================================
Natural Gas (MMCF/D)
Consolidated
Norway 298 268 259 264 272 269 260 260 291 270
United Kingdom 824 741 588 851 751 851 796 665 734 761
Canada 417 422 429 430 425 424 1,204 1,154 1,140 983
China - - - - - - 10 8 9 7
Timor Sea 35 35 35 33 34 144 251 300 243 235
Indonesia 273 287 303 330 298 294 323 342 315 319
Vietnam 18 14 20 19 18 24 19 20 20 21
Libya - - - - - - - - 17 4
Other 76 81 74 105 84 121 207 187 237 188
Equity affiliates 5 7 10 3 7 11 10 8 7 9
- -------------------------------------------------------------------------------- ----------------------------------------
Total 1,946 1,855 1,718 2,035 1,889 2,138 3,080 2,944 3,013 2,797
================================================================================ ========================================
Canadian Syncrude (MB/D) 14 21 21 20 19 16 19 23 26 21
- -------------------------------------------------------------------------------- ----------------------------------------
Darwin, Australia LNG Sales (MMCF/D) - - - - - 136 305 411 382 310
- -------------------------------------------------------------------------------- ----------------------------------------
Page 7 of 12
INTERNATIONAL E&P (continued)
2005 2006
------------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
------------------------------------------- -----------------------------------------
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated
Norway 45.52 50.21 60.42 56.36 53.18 61.36 68.64 68.48 60.07 64.61
United Kingdom 49.47 48.02 60.83 54.87 53.13 59.13 65.32 64.67 58.71 62.08
Canada 36.96 41.09 54.74 46.44 44.70 44.28 60.86 61.00 49.28 54.25
China 41.51 46.95 51.89 49.86 47.85 57.90 66.68 64.68 51.06 60.00
Indonesia 46.51 47.57 61.77 47.00 49.45 57.94 58.15 62.69 52.21 57.80
Vietnam 47.77 53.32 58.52 52.77 53.23 62.34 68.53 71.35 56.77 64.75
Timor Sea 47.99 50.90 59.03 52.90 52.95 60.37 66.98 66.84 57.27 63.21
Libya - - - - - - 68.07 67.75 58.19 65.11
Other 44.56 50.11 60.99 57.03 52.93 62.95 69.20 70.39 60.92 65.85
Equity affiliates 30.38 36.11 45.25 38.90 37.79 43.38 52.28 46.98 41.79 46.01
Total 42.77 46.16 56.19 51.41 49.09 55.92 64.50 63.73 55.00 59.92
- ----------------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids ($/bbl)
Norway 30.63 28.20 37.29 33.81 32.45 42.55 40.99 43.91 39.46 41.61
Canada 37.37 37.66 44.22 49.63 42.20 46.21 46.73 46.16 43.87 45.62
Timor Sea 34.40 35.99 40.45 47.29 40.11 46.68 41.35 45.63 41.62 43.95
Other 21.34 22.30 26.63 20.30 22.17 27.16 33.82 26.79 19.33 26.23
Total 32.35 32.03 39.29 40.04 36.25 43.25 43.28 44.89 40.25 42.89
- ----------------------------------------------------------------------------------- -----------------------------------------
Natural Gas ($/mcf)
Consolidated
Norway 5.03 5.30 5.13 6.40 5.46 7.28 7.09 7.48 8.58 7.61
United Kingdom 5.54 5.01 4.92 7.64 5.89 8.81 6.84 7.08 8.52 7.85
Canada 5.33 6.14 7.54 9.86 7.25 6.28 5.47 5.43 5.91 5.67
China - - - - - - 1.90 4.11 2.80 2.87
Timor Sea 0.52 0.52 0.56 0.61 0.55 0.67 0.65 0.69 0.74 0.69
Indonesia 5.08 5.96 6.73 6.23 6.03 7.45 7.53 6.71 5.78 6.86
Vietnam 1.04 1.04 1.05 1.07 1.05 1.07 1.07 1.07 1.05 1.06
Libya - - - - - - - - 0.09 0.09
Other 0.70 0.59 0.66 0.72 0.67 0.82 2.57 2.04 2.02 1.98
Equity affiliates 0.25 0.32 0.20 0.28 0.26 0.23 0.36 0.32 0.32 0.30
Total 5.03 5.15 5.57 7.16 5.76 7.13 5.90 5.85 6.36 6.25
- ----------------------------------------------------------------------------------- -----------------------------------------
International Exploration Charges ($ Millions)
Dry Holes 14 22 34 80 150 11 12 10 75 108
Lease Impairments 10 9 14 45 78 11 18 24 22 75
- ----------------------------------------------------------------------------------- -----------------------------------------
Total Non-Cash Charges 24 31 48 125 228 22 30 34 97 183
Other (G&G and Lease Rentals) 51 56 66 84 257 60 85 76 126 347
- ----------------------------------------------------------------------------------- -----------------------------------------
Total International Exploration Charges 75 87 114 209 485 82 115 110 223 530
=================================================================================== =========================================
DD&A ($ Millions) 467 449 454 542 1,912 527 890 939 929 3,285
- ----------------------------------------------------------------------------------- -----------------------------------------
Page 8 of 12
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 1,708 1,464 919 4,481
=================================================================================== =========================================
United States ($ Millions) 570 936 1,096 727 3,329 297 1,433 1,444 741 3,915
- ----------------------------------------------------------------------------------- -----------------------------------------
International ($ Millions) 130 174 294 246 844 93 275 20 178 566
- ----------------------------------------------------------------------------------- -----------------------------------------
Market Indicators
U.S. East Coast Crack Spread ($/bbl) 6.40 8.80 14.81 9.32 9.83 7.52 15.21 10.54 7.86 10.28
U.S. Gulf Coast Crack Spread ($/bbl) 6.37 9.63 17.42 10.27 10.92 8.28 17.26 11.00 6.77 10.83
U.S. Group Central Crack Spread ($/bbl) 7.92 11.51 17.06 11.93 12.10 9.81 19.60 17.75 10.11 14.32
U.S. West Coast Crack Spread ($/bbl) 19.61 22.20 26.61 16.29 21.18 18.87 32.47 21.70 20.36 23.35
U.S. Weighted 3:2:1 Crack Spread ($/bbl) 9.24 12.35 18.51 11.69 12.95 10.56 20.39 14.86 10.49 14.07
NW Europe Crack Spread ($/bbl) 11.14 15.09 16.53 13.68 14.11 10.18 15.20 14.18 11.46 12.75
Singapore 3:1:2 Crack Spread ($/bbl) 13.23 13.95 16.70 12.43 14.08 10.58 19.30 15.13 11.03 14.01
U.S. Wholesale Gasoline Mktg Mrgn ($/bbl) 0.16 2.05 0.70 2.63 1.38 0.71 1.83 5.75 1.81 2.52
- ----------------------------------------------------------------------------------- -----------------------------------------
Realized Margins
Refining Margin ($/bbl)
U.S. 10.11 11.23 14.61 12.71 12.17 10.18 17.23 14.10 11.39 13.29
International 8.43 8.89 11.19 8.95 9.38 5.30 7.64 6.46 6.22 6.50
- ----------------------------------------------------------------------------------- -----------------------------------------
Marketing Margin ($/bbl)*
U.S. 0.46 2.01 0.18 2.52 1.28 0.12 0.48 2.81 1.35 1.21
International 5.61 8.56 6.80 8.62 7.43 6.07 6.67 11.17 9.50 8.38
- ----------------------------------------------------------------------------------- -----------------------------------------
DD&A ($ Millions) 194 197 197 230 818 239 253 246 266 1,004
- ----------------------------------------------------------------------------------- -----------------------------------------
Turnaround Expense ($ Millions) 108 106 53 86 353 163 115 42 94 414
- ----------------------------------------------------------------------------------- -----------------------------------------
Eastern U.S.
Crude Oil Charge Input (MB/D) 403 414 409 416 410 354 281 377 411 356
Total Charge Input (MB/D) 449 454 456 446 451 359 309 418 457 386
Crude Oil Capacity Utilization (%) 95% 98% 97% 98% 97% 84% 66% 89% 97% 84%
Clean Product Yield (%) 92% 88% 89% 91% 90% 90% 87% 88% 90% 89%
- ----------------------------------------------------------------------------------- -----------------------------------------
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 659 715 596 397 591 529 681 730 737 670
Total Charge Input (MB/D) 733 835 674 467 676 587 777 822 812 750
Crude Oil Capacity Utilization (%) 92% 100% 83% 55% 83% 72% 93% 100% 101% 91%
Clean Product Yield (%) 73% 79% 80% 80% 78% 74% 81% 83% 80% 80%
- ----------------------------------------------------------------------------------- -----------------------------------------
Central U.S.
Crude Oil Charge Input (MB/D) 538 594 620 619 594 571 619 600 583 593
Total Charge Input (MB/D) 577 625 653 666 630 613 663 638 621 634
Crude Oil Capacity Utilization (%) 84% 93% 97% 97% 93% 89% 97% 94% 91% 93%
Clean Product Yield (%) 86% 84% 85% 85% 85% 84% 86% 85% 85% 85%
- ----------------------------------------------------------------------------------- -----------------------------------------
Western U.S.
Crude Oil Charge Input (MB/D) 357 410 415 421 401 386 419 420 397 406
Total Charge Input (MB/D) 382 431 439 445 425 419 443 446 426 433
Crude Oil Capacity Utilization (%) 90% 101% 102% 104% 100% 94% 101% 102% 96% 98%
Clean Product Yield (%) 80% 82% 79% 79% 80% 79% 81% 80% 79% 80%
- ----------------------------------------------------------------------------------- -----------------------------------------
TOTAL UNITED STATES
Crude Oil Charge Input (MB/D) 1,957 2,133 2,040 1,853 1,996 1,840 2,000 2,127 2,128 2,025
Total Charge Input (MB/D) 2,141 2,345 2,222 2,024 2,182 1,978 2,192 2,324 2,316 2,203
Crude Oil Capacity Utilization (%) 90% 98% 93% 85% 92% 83% 91% 96% 96% 92%
Clean Product Yield (%) 82% 83% 83% 84% 83% 81% 83% 84% 83% 83%
- ----------------------------------------------------------------------------------- -----------------------------------------
Refined Products Production (MB/D)
Gasoline 968 1,071 1,030 949 1,004 890 1,031 1,084 1,061 1,017
Distillates 599 655 640 583 619 538 601 655 657 613
Aviation Fuel 166 174 153 135 157 146 163 166 167 161
Other 414 449 400 370 406 414 403 429 440 422
- ----------------------------------------------------------------------------------- -----------------------------------------
Total 2,147 2,349 2,223 2,037 2,186 1,988 2,198 2,334 2,325 2,213
=================================================================================== =========================================
Petroleum Products Sales (MB/D)
Gasoline 1,302 1,426 1,397 1,368 1,374 1,258 1,300 1,369 1,416 1,336
Distillates 642 680 725 653 675 626 620 668 707 655
Aviation Fuel 198 214 203 189 201 187 200 180 214 195
Other 461 566 526 521 519 517 555 519 535 531
- ----------------------------------------------------------------------------------- -----------------------------------------
Total 2,603 2,886 2,851 2,731 2,769 2,588 2,675 2,736 2,872 2,717
=================================================================================== =========================================
* Represents marketing sales price less product costs for all distribution
channels other than commercial product supply.
Page 9 of 12
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) 294 259 289 291 283 357 505 474 461 450
Total Charge Input (MB/D) 307 266 305 310 297 369 550 503 494 479
Crude Oil Capacity Utilization (%) 101% 89% 99% 100% 97% 94% 92% 86% 83% 88%
Clean Product Yield (%) 79% 76% 82% 82% 80% 71% 64% 69% 72% 69%
- ------------------------------------------------------------------------------- ---------------------------------------
International - Equity Affiliates
- Net Share**
Crude Oil Charge Input (MB/D) 134 143 142 144 141 133 144 143 144 141
Total Charge Input (MB/D) 137 147 145 145 144 137 149 149 147 145
Crude Oil Capacity Utilization (%) 98% 105% 105% 106% 103% 94% 102% 102% 102% 100%
Clean Product Yield (%) 83% 82% 80% 83% 82% 82% 82% 81% 80% 81%
- ------------------------------------------------------------------------------- ---------------------------------------
TOTAL INTERNATIONAL
Crude Oil Charge Input (MB/D) 428 402 431 435 424 490 649 617 605 591
Total Charge Input (MB/D) 444 413 450 455 441 506 699 652 641 624
Crude Oil Capacity Utilization (%) 100% 94% 101% 102% 99% 94% 94% 89% 87% 91%
Clean Product Yield (%) 80% 78% 81% 82% 80% 74% 68% 72% 74% 72%
- ------------------------------------------------------------------------------- ---------------------------------------
Refined Products Production (MB/D)
Gasoline 141 115 143 152 138 142 165 165 172 161
Distillates 186 178 191 191 186 215 284 271 277 262
Aviation Fuel 21 21 24 24 22 13 13 17 14 14
Other 95 96 90 91 93 130 233 190 170 181
- ------------------------------------------------------------------------------- ---------------------------------------
Total 443 410 448 458 439 500 695 643 633 618
=============================================================================== =======================================
Petroleum Products Sales (MB/D)
Gasoline 185 176 178 175 178 197 225 204 186 203
Distillates 221 212 216 224 218 319 379 352 380 358
Aviation Fuel 7 10 12 8 9 20 18 22 19 19
Other 82 79 64 83 77 159 249 171 135 179
- ------------------------------------------------------------------------------- ---------------------------------------
Total 495 477 470 490 482 695 871 749 720 759
=============================================================================== =======================================
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 2,649 2,744 2,733 2,616
Total Charge Input (MB/D) 2,585 2,758 2,672 2,479 2,623 2,484 2,891 2,976 2,957 2,827
Crude Oil Capacity Utilization (%) 92% 97% 95% 88% 93% 85% 91% 95% 94% 92%
Clean Product Yield (%) 82% 82% 83% 84% 82% 79% 80% 81% 81% 80%
- ------------------------------------------------------------------------------- ---------------------------------------
- ------------------------------------------------------------------------------- ---------------------------------------
Refined Products Production (MB/D)
Gasoline 1,109 1,186 1,173 1,101 1,142 1,032 1,196 1,249 1,233 1,178
Distillates 785 833 831 774 805 753 885 926 934 875
Aviation Fuel 187 195 177 159 179 159 176 183 181 175
Other 509 545 490 461 499 544 636 619 610 603
- ------------------------------------------------------------------------------- ---------------------------------------
Total 2,590 2,759 2,671 2,495 2,625 2,488 2,893 2,977 2,958 2,831
=============================================================================== =======================================
Petroleum Products Sales (MB/D)
Gasoline 1,487 1,602 1,575 1,543 1,552 1,455 1,525 1,573 1,602 1,539
Distillates 863 892 941 877 893 945 999 1,020 1,087 1,013
Aviation Fuel 205 224 215 197 210 207 218 202 233 214
Other 543 645 590 604 596 676 804 690 670 710
- ------------------------------------------------------------------------------- ---------------------------------------
Total 3,098 3,363 3,321 3,221 3,251 3,283 3,546 3,485 3,592 3,476
=============================================================================== =======================================
* 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 10 of 12
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) 110 148 267 189 714 249 387 487 302 1,425
============================================================================= ==========================================
Upstream
Production*
Net crude oil production (MB/D) 190 215 253 281 235 306 346 388 397 360
Net natural gas production (MMCF/D) 67 50 79 72 67 98 343 288 247 244
BOE Total (MBOE/D) 201 223 266 293 246 322 403 436 438 401
- -----------------------------------------------------------------------------------------------------------------------------
* Represents our estimated net
share of LUKOIL's production.
Industry Prices
Crude Oil ($/bbl)
Urals crude (CIF Mediterranean) 43.21 48.49 57.39 54.07 50.87 58.25 64.85 65.81 56.48 61.35
- ----------------------------------------------------------------------------- ------------------------------------------
Downstream
Refinery Throughput*
Crude Processed (MB/D) 92 101 138 156 122 163 168 164 220 179
- ----------------------------------------------------------------------------- ------------------------------------------
* Represents our estimated net share of LUKOIL's crude processed.
MIDSTREAM
2005 2006
-------------------------------------------- -----------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
-------------------------------------------- -----------------------------------------
Midstream Net Income ($ Millions) 385 68 88 147 688 110 108 169 89 476
=================================================================================== =========================================
U.S. Equity Affiliate ($ Millions)* 359 51 76 105 591 93 91 128 73 385
- ----------------------------------------------------------------------------------- -----------------------------------------
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States 23 21 23 22 22 23 22 23 21 22
International 53 44 5 - 25 - - - - -
Equity Affiliates
United States* 110 112 171 172 142 178 183 180 181 181
International 6 6 6 6 6 6 6 7 7 6
- ----------------------------------------------------------------------------------- -----------------------------------------
Total 192 183 205 200 195 207 211 210 209 209
=================================================================================== =========================================
* Represents 30.3 percent interest in DCP Midstream through June 30, 2005,
and 50 percent interest beginning in July 2005.
Natural Gas Liquids
Fractionated (MB/D)
United States* 149 131 123 127 132 141 125 124 136 131
International 64 55 15 10 36 11 14 14 12 13
- ----------------------------------------------------------------------------------- -----------------------------------------
Total 213 186 138 137 168 152 139 138 148 144
=================================================================================== =========================================
* Excludes DCP Midstream
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated 31.95 32.49 39.60 42.70 36.68 37.64 41.73 44.10 37.41 40.22
DCP Midstream 30.61 31.33 38.31 41.84 35.52 37.29 41.18 43.00 36.34 39.45
- ----------------------------------------------------------------------------------- -----------------------------------------
* Prices are based on index prices from the Mont Belvieu and Conway market
hubs that are weighted by natural gas liquids component and location mix.
DD&A ($ Millions) 9 8 7 8 32 7 8 7 7 29
- ----------------------------------------------------------------------------------- -----------------------------------------
Page 11 of 12
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 13 114 323 149 103 142 98 492
================================================================================= =========================================
Industry Margins (Cents/Lb)*
Ethylene industry cash margin 18.1 12.8 8.8 21.1 15.2 20.5 14.3 17.0 16.0 17.0
HDPE industry contract sales margin 12.1 12.0 8.2 12.9 11.3 15.9 14.0 13.9 11.9 13.9
Styrene industry
contract sales margin 13.9 13.6 12.4 12.3 13.1 12.5 11.9 11.3 11.5 11.8
- --------------------------------------------------------------------------------- -----------------------------------------
* 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.
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 (12) 11 8 15
================================================================================= =========================================
Detail of Net Income
(Loss) ($ Millions)
Technology Solutions (2) (4) (5) (5) (16) (12) (4) (3) (4) (23)
Gas-to-Liquids (7) (7) (4) (5) (23) (4) (3) (4) (2) (13)
Power 2 9 17 15 43 31 3 26 22 82
Other (1) (6) (8) (10) (25) (7) (8) (8) (8) (31)
- --------------------------------------------------------------------------------- -----------------------------------------
Total (8) (8) - (5) (21) 8 (12) 11 8 15
================================================================================= =========================================
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) (412) (301) (306) (1,187)
================================================================================= =========================================
Detail of Net Income
(Loss) ($ Millions)
Net interest expense (106) (90) (139) (132) (467) (93) (267) (242) (268) (870)
Corporate overhead (58) (46) (64) (15) (183) (26) (39) (35) (33) (133)
Discontinued operations (11) 7 (4) (15) (23) - - - - -
Acquisition-related expenses - - - - - (5) (39) (32) (22) (98)
Accounting change - - - - - - - - - -
Other (20) (43) (39) (3) (105) (44) (67) 8 17 (86)
- --------------------------------------------------------------------------------- -----------------------------------------
Total (195) (172) (246) (165) (778) (168) (412) (301) (306) (1,187)
================================================================================= =========================================
Before-Tax Net Interest
Expense ($ Millions)
Interest expense (226) (219) (223) (224) (892) (226) (468) (417) (434) (1,545)
Capitalized interest 88 91 102 114 395 111 107 110 130 458
Interest revenue 25 24 28 36 113 30 35 38 2 105
Receivables monetization related (1) - - - (1) - - - - -
Premium on early debt retirement (9) - (50) (51) (110) - - - - -
- --------------------------------------------------------------------------------- -----------------------------------------
(123) (104) (143) (125) (495) (85) (326) (269) (302) (982)
================================================================================= =========================================
Debt
Total Debt ($ Millions) 14,012 14,013 13,497 12,516 12,516 32,193 29,510 27,807 27,134 27,134
Debt-to-Capital Ratio 23% 22% 21% 19% 19% 30% 27% 25% 24% 24%
- --------------------------------------------------------------------------------- -----------------------------------------
Page 12 of 12