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(Mark One) | ||||||||||||
[X]
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | |||||||||||
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SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
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For the quarterly period ended
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March 31, 2010
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or
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE | |||||||||||
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SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
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For the transition period from
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to | |||||||||||
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Commission file number: |
001-32395
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Delaware
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01-0562944 | |||
(State or other jurisdiction of | (I.R.S. Employer | |||
incorporation or organization) | Identification No.) |
Large accelerated filer [x] | Accelerated filer [ ] | Non-accelerated filer [ ] | Smaller reporting company [ ] |
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EX-12 | ||||||||
EX-18 | ||||||||
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EX-31.2 | ||||||||
EX-32 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT |
Consolidated Income Statement | ConocoPhillips |
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | (2) | ||||||
Revenues and Other Income
|
||||||||
Sales and other operating revenues
(1)
|
$ | 44,821 | 30,741 | |||||
Equity in earnings of affiliates
|
868 | 373 | ||||||
Other income
|
73 | 124 | ||||||
Total Revenues and Other Income
|
45,762 | 31,238 | ||||||
|
||||||||
Costs and Expenses
|
||||||||
Purchased crude oil, natural gas and products
|
31,521 | 19,759 | ||||||
Production and operating expenses
|
2,527 | 2,545 | ||||||
Selling, general and administrative expenses
|
444 | 475 | ||||||
Exploration expenses
|
383 | 225 | ||||||
Depreciation, depletion and amortization
|
2,318 | 2,230 | ||||||
Impairments
|
91 | 3 | ||||||
Taxes other than income taxes
(1)
|
4,037 | 3,464 | ||||||
Accretion on discounted liabilities
|
114 | 104 | ||||||
Interest and debt expense
|
301 | 310 | ||||||
Foreign currency transaction (gains) losses
|
36 | 131 | ||||||
Total Costs and Expenses
|
41,772 | 29,246 | ||||||
Income before income taxes
|
3,990 | 1,992 | ||||||
Provision for income taxes
|
1,878 | 1,176 | ||||||
Net income
|
2,112 | 816 | ||||||
Less: net income attributable to noncontrolling interests
|
(14 | ) | (16 | ) | ||||
Net Income Attributable to ConocoPhillips
|
$ | 2,098 | 800 | |||||
|
||||||||
Net Income Attributable to ConocoPhillips Per Share of
Common Stock
(dollars)
|
||||||||
Basic
|
$ | 1.41 | .54 | |||||
Diluted
|
1.40 | .54 | ||||||
|
||||||||
Dividends
Paid Per Share of Common Stock
(dollars)
(3)
|
$ | .50 | .47 | |||||
|
||||||||
Average Common Shares Outstanding
(in thousands)
|
||||||||
Basic
|
1,492,861 | 1,485,890 | ||||||
Diluted
|
1,503,565 | 1,495,247 | ||||||
(1)
Includes excise taxes on petroleum products sales:
|
$ | 3,220 | 3,060 |
1
Consolidated Balance Sheet | ConocoPhillips |
Millions of Dollars | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | * | ||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 855 | 542 | |||||
Accounts and notes receivable (net of allowance of $69 million in 2010
and $76 million in 2009) |
10,968 | 11,861 | ||||||
Accounts and notes receivable—related parties
|
1,662 | 1,354 | ||||||
Inventories
|
7,300 | 4,940 | ||||||
Prepaid expenses and other current assets
|
2,808 | 2,470 | ||||||
Total Current Assets
|
23,593 | 21,167 | ||||||
Investments and long-term receivables
|
36,764 | 35,742 | ||||||
Loans and advances—related parties
|
2,560 | 2,352 | ||||||
Net properties, plants and equipment
|
86,623 | 87,708 | ||||||
Goodwill
|
3,635 | 3,638 | ||||||
Intangibles
|
815 | 823 | ||||||
Other assets
|
820 | 708 | ||||||
Total Assets
|
$ | 154,810 | 152,138 | |||||
|
||||||||
Liabilities
|
||||||||
Accounts payable
|
$ | 14,392 | 14,168 | |||||
Accounts payable—related parties
|
1,545 | 1,317 | ||||||
Short-term debt
|
2,763 | 1,728 | ||||||
Accrued income and other taxes
|
4,105 | 3,402 | ||||||
Employee benefit obligations
|
540 | 846 | ||||||
Other accruals
|
3,260 | 2,234 | ||||||
Total Current Liabilities
|
26,605 | 23,695 | ||||||
Long-term debt
|
26,225 | 26,925 | ||||||
Asset retirement obligations and accrued environmental costs
|
8,661 | 8,713 | ||||||
Joint venture acquisition obligation—related party
|
4,839 | 5,009 | ||||||
Deferred income taxes
|
17,891 | 17,956 | ||||||
Employee benefit obligations
|
4,138 | 4,130 | ||||||
Other liabilities and deferred credits
|
3,034 | 3,097 | ||||||
Total Liabilities
|
91,393 | 89,525 | ||||||
|
||||||||
Equity
|
||||||||
Common stock (2,500,000,000 shares authorized at $.01 par value)
|
||||||||
Issued (2010—1,735,391,399 shares; 2009—1,733,345,558 shares)
|
||||||||
Par value
|
17 | 17 | ||||||
Capital in excess of par
|
43,742 | 43,681 | ||||||
Grantor trusts (at cost: 2010—38,726,514 shares; 2009—38,742,261 shares)
|
(666 | ) | (667 | ) | ||||
Treasury stock (at cost: 2010—208,346,815 shares; 2009—208,346,815 shares)
|
(16,211 | ) | (16,211 | ) | ||||
Accumulated other comprehensive income
|
3,275 | 3,065 | ||||||
Unearned employee compensation
|
(69 | ) | (76 | ) | ||||
Retained earnings
|
32,749 | 32,214 | ||||||
Total Common Stockholders’ Equity
|
62,837 | 62,023 | ||||||
Noncontrolling interests
|
580 | 590 | ||||||
Total Equity
|
63,417 | 62,613 | ||||||
Total Liabilities and Equity
|
$ | 154,810 | 152,138 | |||||
2
Consolidated Statement of Cash Flows | ConocoPhillips |
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | * | ||||||
Cash Flows From Operating Activities
|
||||||||
Net income
|
$ | 2,112 | 816 | |||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation, depletion and amortization
|
2,318 | 2,230 | ||||||
Impairments
|
91 | 3 | ||||||
Dry hole costs and leasehold impairments
|
133 | 123 | ||||||
Accretion on discounted liabilities
|
114 | 104 | ||||||
Deferred taxes
|
(35 | ) | (221 | ) | ||||
Undistributed equity earnings
|
(503 | ) | (280 | ) | ||||
Gain on asset dispositions
|
(24 | ) | (39 | ) | ||||
Other
|
(187 | ) | (2 | ) | ||||
Working capital adjustments
|
||||||||
Decrease (increase) in accounts and notes receivable
|
677 | 1,860 | ||||||
Decrease (increase) in inventories
|
(2,439 | ) | (1,454 | ) | ||||
Decrease (increase) in prepaid expenses and other current assets
|
(398 | ) | (201 | ) | ||||
Increase (decrease) in accounts payable
|
396 | (529 | ) | |||||
Increase (decrease) in taxes and other accruals
|
785 | (525 | ) | |||||
Net Cash Provided by Operating Activities
|
3,040 | 1,885 | ||||||
|
||||||||
Cash Flows From Investing Activities
|
||||||||
Capital expenditures and investments
|
(2,071 | ) | (2,906 | ) | ||||
Proceeds from asset dispositions
|
132 | 86 | ||||||
Long-term advances/loans—related parties
|
(248 | ) | (88 | ) | ||||
Collection of advances/loans—related parties
|
27 | 11 | ||||||
Other
|
3 | (29 | ) | |||||
Net Cash Used in Investing Activities
|
(2,157 | ) | (2,926 | ) | ||||
|
||||||||
Cash Flows From Financing Activities
|
||||||||
Issuance of debt
|
362 | 6,033 | ||||||
Repayment of debt
|
(15 | ) | (4,102 | ) | ||||
Issuance of company common stock
|
9 | (21 | ) | |||||
Dividends paid on company common stock
|
(744 | ) | (696 | ) | ||||
Other
|
(186 | ) | (203 | ) | ||||
Net Cash Provided by (Used in) Financing Activities
|
(574 | ) | 1,011 | |||||
|
||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
4 | 77 | ||||||
|
||||||||
Net Change in Cash and Cash Equivalents
|
313 | 47 | ||||||
Cash and cash equivalents at beginning of period
|
542 | 755 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 855 | 802 | |||||
3
Notes to Consolidated Financial Statements | ConocoPhillips |
Millions of Dollars | ||||||||||||||||||||||||
Three Months Ended March 31 | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Computed | As | Effect | As | Effect | ||||||||||||||||||||
with | Reported | of | Originally | As | of | |||||||||||||||||||
Estimate | with Lag | Change | Reported | Adjusted | Change | |||||||||||||||||||
|
||||||||||||||||||||||||
Equity in earnings of affiliates
|
$ | 751 | 868 | 117 | 415 | 373 | (42 | ) | ||||||||||||||||
Provision for income taxes
|
1,877 | 1,878 | 1 | 1,178 | 1,176 | (2 | ) | |||||||||||||||||
Net Income
|
1,996 | 2,112 | 116 | 856 | 816 | (40 | ) | |||||||||||||||||
Net Income Attributable to
ConocoPhillips
|
1,982 | 2,098 | 116 | 840 | 800 | (40 | ) | |||||||||||||||||
|
||||||||||||||||||||||||
Net Income Attributable to
ConocoPhillips Per Share of
Common Stock (dollars)
|
||||||||||||||||||||||||
Basic
|
$ | 1.33 | 1.41 | 0.08 | 0.57 | 0.54 | (0.03 | ) | ||||||||||||||||
Diluted
|
1.32 | 1.40 | 0.08 | 0.56 | 0.54 | (0.02 | ) | |||||||||||||||||
4
Millions of Dollars | ||||||||||||||||||||||||
March 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
Computed | As | Effect | As | Effect | ||||||||||||||||||||
with | Reported | of | Originally | As | of | |||||||||||||||||||
Estimate | with Lag | Change | Reported | Adjusted | Change | |||||||||||||||||||
|
||||||||||||||||||||||||
Investments and
long-term
receivables
|
$ | 37,098 | 36,764 | (334 | ) | 36,192 | 35,742 | (450 | ) | |||||||||||||||
Deferred income taxes
|
17,897 | 17,891 | (6 | ) | 17,962 | 17,956 | (6 | ) | ||||||||||||||||
Retained earnings
|
33,077 | 32,749 | (328 | ) | 32,658 | 32,214 | (444 | ) | ||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Three Months Ended March 31 | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Computed | As | Effect | As | Effect | ||||||||||||||||||||
with | Reported | of | Originally | As | of | |||||||||||||||||||
Estimate | with Lag | Change | Reported | Adjusted | Change | |||||||||||||||||||
|
||||||||||||||||||||||||
Net income
|
$ | 1,996 | 2,112 | 116 | 856 | 816 | (40 | ) | ||||||||||||||||
Deferred taxes
|
(36 | ) | (35 | ) | 1 | (219 | ) | (221 | ) | (2 | ) | |||||||||||||
Undistributed equity earnings
|
(386 | ) | (503 | ) | (117 | ) | (322 | ) | (280 | ) | 42 | |||||||||||||
5
6
Millions of Dollars | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
|
||||||||
Crude oil and petroleum products
|
$ | 6,305 | 3,955 | |||||
Materials, supplies and other
|
995 | 985 | ||||||
|
$ | 7,300 | 4,940 | |||||
7
• | $691 million in loan financing to Freeport LNG Development, L.P. | ||
• | $275 million in loan financing at March 2010 exchange rates to Varandey Terminal Company. | ||
• | $1,051 million in project financing and an additional $91 million of accrued interest to Qatargas 3. | ||
• | $550 million in loan financing to WRB Refining LLC. |
Millions of Dollars | ||||||||||||||||||||||||
March 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||||||||
PP&E | DD&A | PP&E | PP&E | DD&A | PP&E | |||||||||||||||||||
|
||||||||||||||||||||||||
E&P
|
$ | 115,611 | 46,641 | 68,970 | 115,224 | 45,577 | 69,647 | |||||||||||||||||
Midstream
|
124 | 76 | 48 | 123 | 74 | 49 | ||||||||||||||||||
R&M
|
22,835 | 6,838 | 15,997 | 23,047 | 6,714 | 16,333 | ||||||||||||||||||
LUKOIL Investment
|
- | - | - | - | - | - | ||||||||||||||||||
Chemicals
|
- | - | - | - | - | - | ||||||||||||||||||
Emerging Businesses
|
1,139 | 301 | 838 | 1,198 | 300 | 898 | ||||||||||||||||||
Corporate and Other
|
1,657 | 887 | 770 | 1,650 | 869 | 781 | ||||||||||||||||||
|
$ | 141,366 | 54,743 | 86,623 | 141,242 | 53,534 | 87,708 | |||||||||||||||||
8
9
Millions of Dollars | ||||||||||||||||||||||||
2010 | 2009* | |||||||||||||||||||||||
Common | Non- | Common | Non- | |||||||||||||||||||||
Stockholders’ | Controlling | Total | Stockholders’ | Controlling | Total | |||||||||||||||||||
Equity | Interest | Equity | Equity | Interest | Equity | |||||||||||||||||||
|
||||||||||||||||||||||||
Balance at January 1
|
$ | 62,023 | 590 | 62,613 | 55,165 | 1,100 | 56,265 | |||||||||||||||||
Net income
|
2,098 | 14 | 2,112 | 800 | 16 | 816 | ||||||||||||||||||
Dividends
|
(1,563 | ) | - | (1,563 | ) | (696 | ) | - | (696 | ) | ||||||||||||||
Distributions to
noncontrolling interests |
- | (24 | ) | (24 | ) | - | (17 | ) | (17 | ) | ||||||||||||||
Other changes, net**
|
279 | - | 279 | (214 | ) | (1 | ) | (215 | ) | |||||||||||||||
Balance at March 31
|
$ | 62,837 | 580 | 63,417 | 55,055 | 1,098 | 56,153 | |||||||||||||||||
• | In December 2005, we issued a construction completion guarantee for 30 percent of the $4 billion in loan facilities of Qatargas 3, which are being used to finance the construction of an LNG train in Qatar. Of the $4 billion in loan facilities, we committed to provide $1.2 billion. The maximum potential amount of future payments to third-party lenders under the guarantee is estimated to be $850 million, which could become payable if the full debt financing is utilized and completion of the Qatargas 3 Project is not achieved. The project financing will be nonrecourse to ConocoPhillips upon certified completion, which is expected in 2011. At March 31, 2010, the carrying value of the guarantee to third-party lenders was $11 million. |
• | In June 2006, we issued a guarantee for our ownership percentage of $2 billion in credit facilities of Rockies Express Pipeline LLC, operated by Kinder Morgan Energy Partners, L.P. At March 31, 2010, the total carrying value of this guarantee was $11 million, and Rockies Express had no amount outstanding under the credit facilities. In April 2010, the credit facilities were reduced to $200 million and our guarantee was released. |
• | At March 31, 2010, we had guarantees outstanding for our portion of joint venture debt obligations, which have terms of up to 16 years. The maximum potential amount of future payments under the guarantees is approximately $80 million. Payment would be required if a joint venture defaults on its debt obligations. |
10
• | In conjunction with our purchase of a 50 percent ownership interest in Australia Pacific LNG (APLNG) from Origin Energy in October 2008, we agreed to participate, if and when requested, in any parent company guarantees that were outstanding at the time we purchased our interest in APLNG. These parent company guarantees cover the obligation of APLNG to deliver natural gas under several sales agreements with remaining terms of 7 to 22 years. Our maximum potential amount of future payments, or cost of volume delivery, under these guarantees is estimated to be $1,475 million ($3,185 million in the event of intentional or reckless breach) at March 2010 exchange rates based on our 50 percent share of the remaining contracted volumes, which could become payable if APLNG fails to meet its obligations under these agreements and the obligations cannot otherwise be mitigated. Future payments are considered unlikely, as the payments, or cost of volume delivery, would only be triggered if APLNG does not have enough natural gas to meet these sales commitments and if the partners do not make necessary equity contributions into APLNG. |
• | We have other guarantees with maximum future potential payment amounts totaling $450 million, which consist primarily of guarantees to fund the short-term cash liquidity deficits of certain joint ventures, a guarantee of minimum charter revenue for two LNG vessels, one small construction completion guarantee, guarantees of the lease payment obligations of a joint venture, and guarantees of the residual value of leased corporate aircraft. At March 31, 2010, the carrying value of these guarantees to third-party lenders was $1 million. These guarantees generally extend up to 15 years or life of the venture. |
11
12
13
Millions of Dollars | ||||||||||||||||||||||||||||||||
March 31, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Commodity derivatives
|
$ | 2,596 | 1,744 | 75 | 4,415 | 1,710 | 1,659 | 61 | 3,430 | |||||||||||||||||||||||
Foreign exchange derivatives
|
- | 30 | - | 30 | - | 45 | - | 45 | ||||||||||||||||||||||||
Total assets
|
2,596 | 1,774 | 75 | 4,445 | 1,710 | 1,704 | 61 | 3,475 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||
Commodity derivatives
|
(2,903 | ) | (1,541 | ) | (15 | ) | (4,459 | ) | (1,797 | ) | (1,496 | ) | (24 | ) | (3,317 | ) | ||||||||||||||||
Foreign exchange
derivatives
|
- | (36 | ) | - | (36 | ) | - | (47 | ) | - | (47 | ) | ||||||||||||||||||||
Total liabilities
|
(2,903 | ) | (1,577 | ) | (15 | ) | (4,495 | ) | (1,797 | ) | (1,543 | ) | (24 | ) | (3,364 | ) | ||||||||||||||||
Net assets (liabilities)
|
$ | (307 | ) | 197 | 60 | (50 | ) | (87 | ) | 161 | 37 | 111 | ||||||||||||||||||||
14
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||
Beginning balance
|
$ | 37 | 40 | |||||
Total gains (losses), realized and unrealized
|
||||||||
Included in earnings
|
32 | 26 | ||||||
Included in other comprehensive income
|
- | - | ||||||
Purchases, issuances and settlements
|
(3 | ) | (10 | ) | ||||
Transfers into Level 3
|
- | 57 | ||||||
Transfers out of Level 3
|
(6 | ) | (17 | ) | ||||
Ending balance
|
$ | 60 | 96 | |||||
Millions of Dollars | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31 | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Purchased | Purchased | |||||||||||||||||||||||
Other | Crude Oil, | Other | Crude Oil, | |||||||||||||||||||||
Operating | Natural Gas | Operating | Natural Gas | |||||||||||||||||||||
Revenues | and Products | Total | Revenues | and Products | Total | |||||||||||||||||||
|
||||||||||||||||||||||||
Total gains
(losses) included
in earnings
|
$ | 44 | (12 | ) | 32 | 27 | (1 | ) | 26 | |||||||||||||||
|
||||||||||||||||||||||||
Change in
unrealized gains
(losses) relating
to assets held at
March 31
|
$ | 49 | - | 49 | 36 | - | 36 | |||||||||||||||||
|
||||||||||||||||||||||||
Change in
unrealized gains
(losses) relating
to liabilities held
at
March 31
|
$ | (8 | ) | (11 | ) | (19 | ) | (10 | ) | - | (10 | ) | ||||||||||||
15
Millions of Dollars | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
Assets
|
||||||||
Prepaid expenses and other current assets
|
$ | 3,974 | 3,084 | |||||
Other assets
|
449 | 359 | ||||||
Liabilities
|
||||||||
Other accruals
|
4,032 | 3,006 | ||||||
Other liabilities and deferred credits
|
435 | 324 | ||||||
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
|
||||||||
Sales and other operating revenues
|
$ | 482 | 573 | |||||
Other income
|
(10 | ) | 8 | |||||
Purchased crude oil, natural gas and products
|
(507 | ) | (512 | ) | ||||
Open Position | ||||||||
Long/(Short) | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
Commodity
|
||||||||
Crude oil, refined products and natural gas liquids (millions of barrels)
|
(36 | ) | (16 | ) | ||||
Natural gas and power (billions of cubic feet)
|
||||||||
Fixed price
|
(96 | ) | (60 | ) | ||||
Basis
|
163 | 154 | ||||||
16
Millions of Dollars | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
Assets
|
||||||||
Prepaid expenses and other current assets
|
$ | 29 | 38 | |||||
Other assets
|
1 | 7 | ||||||
Liabilities
|
||||||||
Other accruals
|
31 | 40 | ||||||
Other liabilities and deferred credits
|
5 | 7 | ||||||
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
|
||||||||
Foreign currency transaction (gains) losses
|
$ | 46 | (6 | ) | ||||
In Millions | ||||||||
Notional Currency* | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
Foreign Currency Swaps
|
||||||||
Sell U.S. dollar, buy other currencies**
|
USD | 2,354 | 3,211 | |||||
Buy British pound, sell euro
|
EUR | 253 | 267 | |||||
17
• | Cash and cash equivalents: The carrying amount reported on the balance sheet approximates fair value. | ||
• | Accounts and notes receivable: The carrying amount reported on the balance sheet approximates fair value. | ||
• | Investment in LUKOIL shares: See Note 6—Investments, Loans and Long-Term Receivables, for a discussion of the carrying value and fair value of our investment in LUKOIL shares. | ||
• | Debt: The carrying amount of our floating-rate debt approximates fair value. The fair value of the fixed-rate debt is estimated based on quoted market prices. | ||
• | Fixed-rate 5.3 percent joint venture acquisition obligation: Fair value is estimated based on the net present value of the future cash flows, discounted at a March 31 effective yield rate of 2.65 percent, based on yields of U.S. Treasury securities of similar average duration adjusted for our average credit risk spread and the amortizing nature of the obligation principal. See Note 10—Joint Venture Acquisition Obligation, for additional information. | ||
• | Swaps: Fair value is estimated based on forward market prices and approximates the exit price at period end. When forward market prices are not available, they are estimated using the forward prices of a similar commodity with adjustments for differences in quality or location. | ||
• | Futures: Fair values are based on quoted market prices obtained from the New York Mercantile Exchange, the ICE Futures, or other traded exchanges. | ||
• | Forward-exchange contracts: Fair value is estimated by comparing the contract rate to the forward rate in effect on March 31, 2010, and approximates the exit price at that date. |
18
Millions of Dollars | ||||||||||||||||
Carrying Amount | Fair Value | |||||||||||||||
March 31 | December 31 | March 31 | December 31 | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Financial assets
|
||||||||||||||||
Foreign currency derivatives
|
$ | 30 | 45 | 30 | 45 | |||||||||||
Commodity derivatives
|
1,120 | 823 | 1,120 | 823 | ||||||||||||
Financial liabilities
|
||||||||||||||||
Total debt, excluding capital leases
|
28,958 | 28,622 | 30,951 | 30,565 | ||||||||||||
Joint venture acquisition obligation
|
5,507 | 5,669 | 6,074 | 6,276 | ||||||||||||
Foreign currency derivatives
|
36 | 47 | 36 | 47 | ||||||||||||
Commodity derivatives
|
842 | 632 | 842 | 632 | ||||||||||||
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
|
||||||||
Net income
|
$ | 2,112 | 816 | |||||
After-tax changes in:
|
||||||||
Defined benefit plans
|
||||||||
Net prior service cost
|
2 | 3 | ||||||
Net actuarial gain
|
35 | 34 | ||||||
Nonsponsored plans
|
2 | (1 | ) | |||||
Foreign currency translation adjustments
|
171 | (278 | ) | |||||
Hedging activities
|
- | (1 | ) | |||||
Comprehensive income
|
2,322 | 573 | ||||||
Less: comprehensive income attributable to noncontrolling interests
|
(14 | ) | (16 | ) | ||||
Comprehensive income attributable to ConocoPhillips
|
$ | 2,308 | 557 | |||||
19
Millions of Dollars | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
|
||||||||
Defined benefit plans
|
$ | (1,465 | ) | (1,504 | ) | |||
Foreign currency translation adjustments
|
4,747 | 4,576 | ||||||
Deferred net hedging loss
|
(7 | ) | (7 | ) | ||||
Accumulated other comprehensive income
|
$ | 3,275 | 3,065 | |||||
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Cash Payments
|
||||||||
Interest
|
$ | 322 | 95 | |||||
Income taxes
|
1,596 | 1,346 | ||||||
Millions of Dollars | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
Three Months Ended | March 31 | March 31 | ||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
U.S. | Int’l. | U.S. | Int’l. | |||||||||||||||||||||
Components of Net Periodic Benefit Cost
|
||||||||||||||||||||||||
Service cost
|
$ | 57 | 23 | 48 | 20 | 3 | 2 | |||||||||||||||||
Interest cost
|
65 | 43 | 69 | 33 | 11 | 12 | ||||||||||||||||||
Expected return on plan assets
|
(56 | ) | (38 | ) | (46 | ) | (29 | ) | - | - | ||||||||||||||
Amortization of prior service cost
|
2 | - | 3 | - | 1 | 2 | ||||||||||||||||||
Recognized net actuarial loss (gain)
|
42 | 14 | 47 | 8 | (2 | ) | (4 | ) | ||||||||||||||||
Net periodic benefit cost
|
$ | 110 | 42 | 121 | 32 | 13 | 12 | |||||||||||||||||
20
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
|
||||||||
Operating revenues (a)
|
$ | 1,934 | 1,473 | |||||
Purchases (b)
|
3,439 | 2,482 | ||||||
Operating expenses and selling, general and administrative expenses (c)
|
81 | 85 | ||||||
Net interest expense (d)
|
19 | 19 | ||||||
(a) | We sold natural gas to DCP Midstream, LLC and crude oil to the Malaysian Refining Company Sdn. Bhd. (MRC), among others, for processing and marketing. Natural gas liquids, solvents and petrochemical feedstocks were sold to Chevron Phillips Chemical Company LLC (CPChem), gas oil and hydrogen feedstocks were sold to Excel Paralubes and refined products were sold primarily to CFJ Properties and LUKOIL. Natural gas, crude oil, blendstock and other intermediate products were sold to WRB Refining LLC. In addition, we charged several of our affiliates, including CPChem and MSLP, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities. | |
(b) | We purchased refined products from WRB. We purchased natural gas and natural gas liquids from DCP Midstream and CPChem for use in our refinery processes and other feedstocks from various affiliates. We purchased crude oil from LUKOIL and refined products from MRC. We also paid fees to various pipeline equity companies for transporting finished refined products and natural gas, as well as a price upgrade to MSLP for heavy crude processing. We purchased base oils and fuel products from Excel Paralubes for use in our refinery and specialty businesses. | |
(c) | We paid processing fees to various affiliates. Additionally, we paid transportation fees to pipeline equity companies. | |
(d) | We paid and/or received interest to/from various affiliates, including FCCL Partnership. See Note 6—Investments, Loans and Long-Term Receivables, for additional information on loans to affiliated companies. |
1) | E&P —This segment primarily explores for, produces, transports and markets crude oil, bitumen, natural gas and natural gas liquids on a worldwide basis. | ||
2) | Midstream —This segment gathers, processes and markets natural gas produced by ConocoPhillips and others, and fractionates and markets natural gas liquids, predominantly in the United States and Trinidad. The Midstream segment primarily consists of our 50 percent equity investment in DCP Midstream, LLC. | ||
3) | R&M —This segment purchases, refines, markets and transports crude oil and petroleum products, mainly in the United States, Europe and Asia. |
21
4) | LUKOIL Investment —This segment represents our investment in the ordinary shares of OAO LUKOIL, an international, integrated oil and gas company headquartered in Russia. At March 31, 2010, our ownership interest was 20 percent based on issued shares, and 20.09 percent based on estimated shares outstanding. | ||
5) | Chemicals —This segment manufactures and markets petrochemicals and plastics on a worldwide basis. The Chemicals segment consists of our 50 percent equity investment in Chevron Phillips Chemical Company LLC. | ||
6) | Emerging Businesses —This segment represents our investment in new technologies or businesses outside our normal scope of operations. |
22
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Sales and Other Operating Revenues
|
||||||||
E&P
|
||||||||
United States
|
$ | 8,192 | 6,096 | |||||
International
|
7,460 | 6,651 | ||||||
Intersegment eliminations—U.S.
|
(1,375 | ) | (859 | ) | ||||
Intersegment eliminations—international
|
(1,896 | ) | (1,388 | ) | ||||
E&P
|
12,381 | 10,500 | ||||||
Midstream
|
||||||||
Total sales
|
2,078 | 922 | ||||||
Intersegment eliminations
|
(116 | ) | (48 | ) | ||||
Midstream
|
1,962 | 874 | ||||||
R&M
|
||||||||
United States
|
21,713 | 13,000 | ||||||
International
|
8,913 | 6,464 | ||||||
Intersegment eliminations—U.S.
|
(198 | ) | (117 | ) | ||||
Intersegment eliminations—international
|
(13 | ) | (8 | ) | ||||
R&M
|
30,415 | 19,339 | ||||||
LUKOIL Investment
|
- | - | ||||||
Chemicals
|
3 | 3 | ||||||
Emerging Businesses
|
||||||||
Total sales
|
215 | 154 | ||||||
Intersegment eliminations
|
(159 | ) | (137 | ) | ||||
Emerging Businesses
|
56 | 17 | ||||||
Corporate and Other
|
4 | 8 | ||||||
Consolidated sales and other operating revenues
|
$ | 44,821 | 30,741 | |||||
|
||||||||
|
||||||||
Net Income (Loss) Attributable to ConocoPhillips
|
||||||||
E&P
|
||||||||
United States
|
$ | 757 | 173 | |||||
International
|
1,075 | 527 | ||||||
Total E&P
|
1,832 | 700 | ||||||
Midstream
|
77 | 123 | ||||||
R&M
|
||||||||
United States
|
12 | 98 | ||||||
International
|
(16 | ) | 107 | |||||
Total R&M
|
(4 | ) | 205 | |||||
LUKOIL Investment
|
387 | 8 | * | |||||
Chemicals
|
110 | 23 | ||||||
Emerging Businesses
|
6 | - | ||||||
Corporate and Other
|
(310 | ) | (259 | ) | ||||
Net income attributable to ConocoPhillips
|
$ | 2,098 | 800 | |||||
23
Millions of Dollars | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
Total Assets
|
||||||||
E&P
|
||||||||
United States
|
$ | 35,754 | 36,122 | |||||
International
|
64,118 | 64,831 | ||||||
Total E&P
|
99,872 | 100,953 | ||||||
Midstream
|
1,732 | 2,054 | ||||||
R&M
|
||||||||
United States
|
27,294 | 24,963 | ||||||
International
|
9,451 | 8,446 | ||||||
Goodwill
|
3,635 | 3,638 | ||||||
Total R&M
|
40,380 | 37,047 | ||||||
LUKOIL Investment
|
6,809 | 6,416 | * | |||||
Chemicals
|
2,583 | 2,451 | ||||||
Emerging Businesses
|
1,019 | 1,069 | ||||||
Corporate and Other
|
2,415 | 2,148 | ||||||
Consolidated total assets
|
$ | 154,810 | 152,138 | |||||
24
• | ConocoPhillips, ConocoPhillips Company, ConocoPhillips Australia Funding Company, ConocoPhillips Canada Funding Company I, and ConocoPhillips Canada Funding Company II (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). | ||
• | All other nonguarantor subsidiaries of ConocoPhillips. | ||
• | The consolidating adjustments necessary to present ConocoPhillips’ results on a consolidated basis. |
25
Millions of Dollars | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2010 | ||||||||||||||||||||||||||||||||
ConocoPhillips | ConocoPhillips | ConocoPhillips | ||||||||||||||||||||||||||||||
Australia | Canada | Canada | ||||||||||||||||||||||||||||||
ConocoPhillips | Funding | Funding | Funding | All Other | Consolidating | Total | ||||||||||||||||||||||||||
Income Statement | ConocoPhillips | Company | Company | Company I | Company II | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Revenues and Other Income
|
||||||||||||||||||||||||||||||||
Sales and other operating revenues
|
$ | - | 27,922 | - | - | - | 16,899 | - | 44,821 | |||||||||||||||||||||||
Equity in earnings of affiliates
|
2,232 | 2,400 | - | - | - | 678 | (4,442 | ) | 868 | |||||||||||||||||||||||
Other income (loss)
|
- | 86 | - | - | - | (13 | ) | - | 73 | |||||||||||||||||||||||
Intercompany revenues
|
1 | 267 | 11 | 21 | 13 | 5,470 | (5,783 | ) | - | |||||||||||||||||||||||
Total Revenues and Other Income
|
2,233 | 30,675 | 11 | 21 | 13 | 23,034 | (10,225 | ) | 45,762 | |||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Costs and Expenses
|
||||||||||||||||||||||||||||||||
Purchased crude oil, natural gas and products
|
- | 25,127 | - | - | - | 11,951 | (5,557 | ) | 31,521 | |||||||||||||||||||||||
Production and operating expenses
|
- | 1,105 | - | - | - | 1,450 | (28 | ) | 2,527 | |||||||||||||||||||||||
Selling, general and administrative expenses
|
4 | 322 | - | - | - | 125 | (7 | ) | 444 | |||||||||||||||||||||||
Exploration expenses
|
- | 172 | - | - | - | 211 | - | 383 | ||||||||||||||||||||||||
Depreciation, depletion and amortization
|
- | 419 | - | - | - | 1,899 | - | 2,318 | ||||||||||||||||||||||||
Impairments
|
- | 3 | - | - | - | 88 | - | 91 | ||||||||||||||||||||||||
Taxes other than income taxes
|
- | 1,209 | - | - | - | 2,828 | - | 4,037 | ||||||||||||||||||||||||
Accretion on discounted liabilities
|
- | 15 | - | - | - | 99 | - | 114 | ||||||||||||||||||||||||
Interest and debt expense
|
203 | 13 | 10 | 19 | 13 | 234 | (191 | ) | 301 | |||||||||||||||||||||||
Foreign currency transaction (gains) losses
|
- | 30 | - | 31 | 49 | (74 | ) | - | 36 | |||||||||||||||||||||||
Total Costs and Expenses
|
207 | 28,415 | 10 | 50 | 62 | 18,811 | (5,783 | ) | 41,772 | |||||||||||||||||||||||
Income before income taxes
|
2,026 | 2,260 | 1 | (29 | ) | (49 | ) | 4,223 | (4,442 | ) | 3,990 | |||||||||||||||||||||
Provision for income taxes
|
(72 | ) | 28 | - | 3 | (5 | ) | 1,924 | - | 1,878 | ||||||||||||||||||||||
Net income
|
2,098 | 2,232 | 1 | (32 | ) | (44 | ) | 2,299 | (4,442 | ) | 2,112 | |||||||||||||||||||||
Less: net income attributable to
noncontrolling interests
|
- | - | - | - | - | (14 | ) | - | (14 | ) | ||||||||||||||||||||||
Net Income Attributable to ConocoPhillips
|
$ | 2,098 | 2,232 | 1 | (32 | ) | (44 | ) | 2,285 | (4,442 | ) | 2,098 | ||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2009 | ||||||||||||||||||||||||||||||||
ConocoPhillips | ConocoPhillips | ConocoPhillips | ||||||||||||||||||||||||||||||
Australia | Canada | Canada | ||||||||||||||||||||||||||||||
ConocoPhillips | Funding | Funding | Funding | All Other | Consolidating | Total | ||||||||||||||||||||||||||
Income Statement | ConocoPhillips | Company | Company | Company I | Company II | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Revenues and Other Income
|
||||||||||||||||||||||||||||||||
Sales and other operating revenues
|
$ | - | 17,534 | - | - | - | 13,207 | - | 30,741 | |||||||||||||||||||||||
Equity in earnings of affiliates
|
889 | 915 | - | - | - | 239 | (1,670 | ) | 373 | |||||||||||||||||||||||
Other income (loss)
|
(2 | ) | 203 | - | - | - | (77 | ) | - | 124 | ||||||||||||||||||||||
Intercompany revenues
|
1 | 382 | 17 | 18 | 11 | 3,504 | (3,933 | ) | - | |||||||||||||||||||||||
Total Revenues and Other Income
|
888 | 19,034 | 17 | 18 | 11 | 16,873 | (5,603 | ) | 31,238 | |||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Costs and Expenses
|
||||||||||||||||||||||||||||||||
Purchased crude oil, natural gas and products
|
- | 14,841 | - | - | - | 8,587 | (3,669 | ) | 19,759 | |||||||||||||||||||||||
Production and operating expenses
|
2 | 1,094 | - | - | - | 1,475 | (26 | ) | 2,545 | |||||||||||||||||||||||
Selling, general and administrative expenses
|
3 | 323 | - | 1 | 1 | 157 | (10 | ) | 475 | |||||||||||||||||||||||
Exploration expenses
|
- | 65 | - | - | - | 160 | - | 225 | ||||||||||||||||||||||||
Depreciation, depletion and amortization
|
- | 425 | - | - | - | 1,805 | - | 2,230 | ||||||||||||||||||||||||
Impairments
|
- | (5 | ) | - | - | - | 8 | - | 3 | |||||||||||||||||||||||
Taxes other than income taxes
|
- | 1,155 | - | - | - | 2,327 | (18 | ) | 3,464 | |||||||||||||||||||||||
Accretion on discounted liabilities
|
- | 18 | - | - | - | 86 | - | 104 | ||||||||||||||||||||||||
Interest and debt expense
|
130 | 69 | 15 | 19 | 13 | 274 | (210 | ) | 310 | |||||||||||||||||||||||
Foreign currency transaction (gains) losses
|
- | 7 | - | (38 | ) | (7 | ) | 169 | - | 131 | ||||||||||||||||||||||
Total Costs and Expenses
|
135 | 17,992 | 15 | (18 | ) | 7 | 15,048 | (3,933 | ) | 29,246 | ||||||||||||||||||||||
Income before income taxes
|
753 | 1,042 | 2 | 36 | 4 | 1,825 | (1,670 | ) | 1,992 | |||||||||||||||||||||||
Provision for income taxes
|
(47 | ) | 153 | 1 | 1 | (4 | ) | 1,072 | - | 1,176 | ||||||||||||||||||||||
Net income
|
800 | 889 | 1 | 35 | 8 | 753 | (1,670 | ) | 816 | |||||||||||||||||||||||
Less: net income attributable to
noncontrolling interests
|
- | - | - | - | - | (16 | ) | - | (16 | ) | ||||||||||||||||||||||
Net Income Attributable to ConocoPhillips
|
$ | 800 | 889 | 1 | 35 | 8 | 737 | (1,670 | ) | 800 | ||||||||||||||||||||||
26
Millions of Dollars | ||||||||||||||||||||||||||||||||
March 31, 2010 | ||||||||||||||||||||||||||||||||
ConocoPhillips | ConocoPhillips | ConocoPhillips | ||||||||||||||||||||||||||||||
Australia | Canada | Canada | ||||||||||||||||||||||||||||||
ConocoPhillips | Funding | Funding | Funding | All Other | Consolidating | Total | ||||||||||||||||||||||||||
Balance Sheet | ConocoPhillips | Company | Company | Company I | Company II | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | 165 | - | 18 | 1 | 671 | - | 855 | |||||||||||||||||||||||
Accounts and notes receivable
|
27 | 6,087 | - | - | - | 11,584 | (5,068 | ) | 12,630 | |||||||||||||||||||||||
Inventories
|
- | 4,286 | - | - | - | 3,014 | - | 7,300 | ||||||||||||||||||||||||
Short-term investments
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Prepaid expenses and other current assets
|
12 | 910 | - | 2 | 1 | 2,180 | (297 | ) | 2,808 | |||||||||||||||||||||||
Total Current Assets
|
39 | 11,448 | - | 20 | 2 | 17,449 | (5,365 | ) | 23,593 | |||||||||||||||||||||||
Investments, loans and long-term receivables*
|
73,210 | 94,333 | 770 | 1,442 | 977 | 48,216 | (179,624 | ) | 39,324 | |||||||||||||||||||||||
Net properties, plants and equipment
|
- | 19,571 | - | - | - | 67,052 | - | 86,623 | ||||||||||||||||||||||||
Goodwill
|
- | 3,635 | - | - | - | - | - | 3,635 | ||||||||||||||||||||||||
Intangibles
|
- | 766 | - | - | - | 49 | - | 815 | ||||||||||||||||||||||||
Other assets
|
53 | 283 | 1 | 3 | 4 | 658 | (182 | ) | 820 | |||||||||||||||||||||||
Total Assets
|
$ | 73,302 | 130,036 | 771 | 1,465 | 983 | 133,424 | (185,171 | ) | 154,810 | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||||||||||
Accounts payable
|
$ | - | 9,953 | - | 3 | 2 | 11,047 | (5,068 | ) | 15,937 | ||||||||||||||||||||||
Short-term debt
|
544 | 1,614 | - | - | - | 605 | - | 2,763 | ||||||||||||||||||||||||
Accrued income and other taxes
|
- | 257 | - | (1 | ) | - | 3,849 | - | 4,105 | |||||||||||||||||||||||
Employee benefit obligations
|
- | 395 | - | - | - | 145 | - | 540 | ||||||||||||||||||||||||
Other accruals
|
972 | 622 | 19 | 32 | 22 | 1,596 | (3 | ) | 3,260 | |||||||||||||||||||||||
Total Current Liabilities
|
1,516 | 12,841 | 19 | 34 | 24 | 17,242 | (5,071 | ) | 26,605 | |||||||||||||||||||||||
Long-term debt
|
12,563 | 3,710 | 749 | 1,250 | 849 | 7,104 | - | 26,225 | ||||||||||||||||||||||||
Asset retirement obligations and accrued
environmental costs
|
- | 1,395 | - | - | - | 7,266 | - | 8,661 | ||||||||||||||||||||||||
Joint venture acquisition obligation
|
- | - | - | - | - | 4,839 | - | 4,839 | ||||||||||||||||||||||||
Deferred income taxes
|
(4 | ) | 3,056 | - | 14 | 5 | 14,820 | - | 17,891 | |||||||||||||||||||||||
Employee benefit obligations
|
- | 3,107 | - | - | - | 1,031 | - | 4,138 | ||||||||||||||||||||||||
Other liabilities and deferred credits*
|
3,182 | 28,415 | - | 97 | 85 | 17,489 | (46,234 | ) | 3,034 | |||||||||||||||||||||||
Total Liabilities
|
17,257 | 52,524 | 768 | 1,395 | 963 | 69,791 | (51,305 | ) | 91,393 | |||||||||||||||||||||||
Retained earnings
|
26,249 | 11,839 | 1 | (81 | ) | (74 | ) | 11,672 | (16,857 | ) | 32,749 | |||||||||||||||||||||
Other common stockholders’ equity
|
29,796 | 65,673 | 2 | 151 | 94 | 51,381 | (117,009 | ) | 30,088 | |||||||||||||||||||||||
Noncontrolling interests
|
- | - | - | - | - | 580 | - | 580 | ||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity
|
$ | 73,302 | 130,036 | 771 | 1,465 | 983 | 133,424 | (185,171 | ) | 154,810 | ||||||||||||||||||||||
Balance Sheet | December 31, 2009 | |||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$ | - | 122 | - | 18 | 1 | 554 | (153 | ) | 542 | ||||||||||||||||||||||
Accounts and notes receivable
|
26 | 6,495 | - | - | - | 13,712 | (7,018 | ) | 13,215 | |||||||||||||||||||||||
Inventories
|
- | 2,911 | - | - | - | 2,029 | - | 4,940 | ||||||||||||||||||||||||
Short-term investments
|
- | - | - | 2,973 | - | - | (2,973 | ) | - | |||||||||||||||||||||||
Prepaid expenses and other current assets
|
13 | 835 | - | 4 | 3 | 1,621 | (6 | ) | 2,470 | |||||||||||||||||||||||
Total Current Assets
|
39 | 10,363 | - | 2,995 | 4 | 17,916 | (10,150 | ) | 21,167 | |||||||||||||||||||||||
Investments, loans and long-term receivables*
|
70,769 | 91,643 | 759 | 1,376 | 933 | 47,886 | (175,272 | ) | 38,094 | |||||||||||||||||||||||
Net properties, plants and equipment
|
- | 19,838 | - | - | - | 67,870 | - | 87,708 | ||||||||||||||||||||||||
Goodwill
|
- | 3,638 | - | - | - | - | - | 3,638 | ||||||||||||||||||||||||
Intangibles
|
- | 770 | - | - | - | 53 | - | 823 | ||||||||||||||||||||||||
Other assets
|
55 | 240 | 1 | 3 | 4 | 509 | (104 | ) | 708 | |||||||||||||||||||||||
Total Assets
|
$ | 70,863 | 126,492 | 760 | 4,374 | 941 | 134,234 | (185,526 | ) | 152,138 | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||||||||||
Accounts payable
|
$ | 7 | 11,590 | - | 1 | 1 | 10,904 | (7,018 | ) | 15,485 | ||||||||||||||||||||||
Short-term debt
|
235 | 1,286 | - | 2,973 | - | 207 | (2,973 | ) | 1,728 | |||||||||||||||||||||||
Accrued income and other taxes
|
- | 298 | - | (1 | ) | - | 3,105 | - | 3,402 | |||||||||||||||||||||||
Employee benefit obligations
|
- | 588 | - | - | - | 258 | - | 846 | ||||||||||||||||||||||||
Other accruals
|
262 | 643 | 9 | 15 | 10 | 1,301 | (6 | ) | 2,234 | |||||||||||||||||||||||
Total Current Liabilities
|
504 | 14,405 | 9 | 2,988 | 11 | 15,775 | (9,997 | ) | 23,695 | |||||||||||||||||||||||
Long-term debt
|
12,561 | 4,053 | 749 | 1,250 | 849 | 7,463 | - | 26,925 | ||||||||||||||||||||||||
Asset retirement obligations and accrued
environmental costs
|
- | 1,406 | - | - | - | 7,307 | - | 8,713 | ||||||||||||||||||||||||
Joint venture acquisition obligation
|
- | - | - | - | - | 5,009 | - | 5,009 | ||||||||||||||||||||||||
Deferred income taxes
|
(4 | ) | 2,785 | - | 10 | 10 | 15,155 | - | 17,956 | |||||||||||||||||||||||
Employee benefit obligations
|
- | 2,960 | - | - | - | 1,170 | - | 4,130 | ||||||||||||||||||||||||
Other liabilities and deferred credits*
|
2,560 | 25,819 | - | 68 | 37 | 17,296 | (42,683 | ) | 3,097 | |||||||||||||||||||||||
Total Liabilities
|
15,621 | 51,428 | 758 | 4,316 | 907 | 69,175 | (52,680 | ) | 89,525 | |||||||||||||||||||||||
Retained earnings
|
25,714 | 9,607 | - | (49 | ) | (30 | ) | 10,240 | (13,268 | ) | 32,214 | |||||||||||||||||||||
Other common stockholders’ equity
|
29,528 | 65,457 | 2 | 107 | 64 | 54,229 | (119,578 | ) | 29,809 | |||||||||||||||||||||||
Noncontrolling interests
|
- | - | - | - | - | 590 | - | 590 | ||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity
|
$ | 70,863 | 126,492 | 760 | 4,374 | 941 | 134,234 | (185,526 | ) | 152,138 | ||||||||||||||||||||||
27
Millions of Dollars | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2010 | ||||||||||||||||||||||||||||||||
ConocoPhillips | ConocoPhillips | ConocoPhillips | ||||||||||||||||||||||||||||||
Australia | Canada | Canada | ||||||||||||||||||||||||||||||
ConocoPhillips | Funding | Funding | Funding | All Other | Consolidating | Total | ||||||||||||||||||||||||||
Statement of Cash Flows | ConocoPhillips | Company | Company | Company I | Company II | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Cash Flows From Operating Activities
|
||||||||||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities
|
$ | 427 | 667 | - | - | - | 2,647 | (701 | ) | 3,040 | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Cash Flows From Investing Activities
|
||||||||||||||||||||||||||||||||
Capital expenditures and investments
|
- | (299 | ) | - | - | - | (1,843 | ) | 71 | (2,071 | ) | |||||||||||||||||||||
Proceeds from asset dispositions
|
- | 108 | - | - | - | 124 | (100 | ) | 132 | |||||||||||||||||||||||
Long-term advances/loans—related parties
|
- | (281 | ) | - | - | - | (53 | ) | 86 | (248 | ) | |||||||||||||||||||||
Collection of advances/loans—related parties
|
- | 16 | - | - | - | 168 | (157 | ) | 27 | |||||||||||||||||||||||
Other
|
- | - | - | - | - | 3 | - | 3 | ||||||||||||||||||||||||
Net Cash Used in Investing Activities
|
- | (456 | ) | - | - | - | (1,601 | ) | (100 | ) | (2,157 | ) | ||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Cash Flows From Financing Activities
|
||||||||||||||||||||||||||||||||
Issuance of debt
|
309 | - | - | - | - | 139 | (86 | ) | 362 | |||||||||||||||||||||||
Repayment of debt
|
- | (170 | ) | - | - | - | (2 | ) | 157 | (15 | ) | |||||||||||||||||||||
Issuance of company common stock
|
9 | - | - | - | - | - | - | 9 | ||||||||||||||||||||||||
Dividends paid on common stock
|
(744 | ) | - | - | - | - | (853 | ) | 853 | (744 | ) | |||||||||||||||||||||
Other
|
(1 | ) | - | - | - | - | (215 | ) | 30 | (186 | ) | |||||||||||||||||||||
Net Cash Provided by (Used in) Financing Activities
|
(427 | ) | (170 | ) | - | - | - | (931 | ) | 954 | (574 | ) | ||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Effect of Exchange Rate Changes
on Cash and Cash Equivalents
|
- | 2 | - | - | - | 2 | - | 4 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net Change in Cash and Cash Equivalents
|
- | 43 | - | - | - | 117 | 153 | 313 | ||||||||||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 122 | - | 18 | 1 | 554 | (153 | ) | 542 | |||||||||||||||||||||||
Cash and Cash Equivalents at End of Period
|
$ | - | 165 | - | 18 | 1 | 671 | - | 855 | |||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2009 | ||||||||||||||||||||||||||||||||
ConocoPhillips | ConocoPhillips | ConocoPhillips | ||||||||||||||||||||||||||||||
Australia | Canada | Canada | ||||||||||||||||||||||||||||||
ConocoPhillips | Funding | Funding | Funding | All Other | Consolidating | Total | ||||||||||||||||||||||||||
Statement of Cash Flows | ConocoPhillips | Company | Company | Company I | Company II | Subsidiaries | Adjustments | Consolidated | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Cash Flows From Operating Activities
|
||||||||||||||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities
|
$ | (4,130 | ) | 2,661 | - | (1 | ) | - | 4,087 | (732 | ) | 1,885 | ||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Cash Flows From Investing Activities
|
||||||||||||||||||||||||||||||||
Capital expenditures and investments
|
- | (834 | ) | - | - | - | (2,111 | ) | 39 | (2,906 | ) | |||||||||||||||||||||
Proceeds from asset dispositions
|
- | 4 | - | - | - | 82 | - | 86 | ||||||||||||||||||||||||
Long-term advances/loans—related parties
|
- | 7 | - | - | - | (95 | ) | - | (88 | ) | ||||||||||||||||||||||
Collection of advances/loans—related parties
|
- | 71 | - | - | - | 1,454 | (1,514 | ) | 11 | |||||||||||||||||||||||
Other
|
- | (44 | ) | - | - | - | 15 | - | (29 | ) | ||||||||||||||||||||||
Net Cash Used in Investing Activities
|
- | (796 | ) | - | - | - | (655 | ) | (1,475 | ) | (2,926 | ) | ||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Cash Flows From Financing Activities
|
||||||||||||||||||||||||||||||||
Issuance of debt
|
5,946 | - | - | - | - | 87 | - | 6,033 | ||||||||||||||||||||||||
Repayment of debt
|
(1,067 | ) | (1,750 | ) | - | - | - | (2,799 | ) | 1,514 | (4,102 | ) | ||||||||||||||||||||
Issuance of company common stock
|
(21 | ) | - | - | - | - | - | - | (21 | ) | ||||||||||||||||||||||
Dividends paid on common stock
|
(696 | ) | - | - | - | - | (746 | ) | 746 | (696 | ) | |||||||||||||||||||||
Other
|
(32 | ) | - | - | - | - | (132 | ) | (39 | ) | (203 | ) | ||||||||||||||||||||
Net Cash Provided by (Used in) Financing Activities
|
4,130 | (1,750 | ) | - | - | - | (3,590 | ) | 2,221 | 1,011 | ||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Effect of Exchange Rate Changes
on Cash and Cash Equivalents
|
- | - | - | - | - | 77 | - | 77 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net Change in Cash and Cash Equivalents
|
- | 115 | - | (1 | ) | - | (81 | ) | 14 | 47 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of period
|
- | 8 | - | 10 | 1 | 750 | (14 | ) | 755 | |||||||||||||||||||||||
Cash and Cash Equivalents at End of Period
|
$ | - | 123 | - | 9 | 1 | 669 | - | 802 | |||||||||||||||||||||||
28
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
29
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
|
||||||||
Exploration and Production (E&P)
|
$ | 1,832 | 700 | |||||
Midstream
|
77 | 123 | ||||||
Refining and Marketing (R&M)
|
(4 | ) | 205 | |||||
LUKOIL Investment
|
387 | 8 | * | |||||
Chemicals
|
110 | 23 | ||||||
Emerging Businesses
|
6 | - | ||||||
Corporate and Other
|
(310 | ) | (259 | ) | ||||
Net income attributable to ConocoPhillips
|
$ | 2,098 | 800 | |||||
• | Substantially higher prices for crude oil and natural gas liquids in our E&P segment. Commodity price benefits were somewhat counteracted by increased production taxes. | ||
• | Significantly improved earnings from our LUKOIL Investment segment, primarily resulting from increased equity earnings. Equity earnings were not recorded in the first quarter of 2009, since our LUKOIL investment was written down to fair value at December 31, 2008. |
30
• | Improved earnings from LUKOIL. Equity earnings from LUKOIL were not recorded in the first quarter of 2009, since our LUKOIL investment was written down to fair value at December 31, 2008. | ||
• | Improved earnings from FCCL Partnership due to significantly higher commodity prices and volumes. | ||
• | Improved earnings from CPChem due to higher margins in the olefins and polyolefins business line, as well as the specialties, aromatics and styrenics business line. |
• | Lower results from WRB Refining LLC primarily due to lower refining margins. | ||
• | Lower results from DCP Midstream. The first quarter of 2009 included the recognition of an $88 million after-tax deferred gain. This decrease in earnings was partially offset by higher NGL prices and margins. |
31
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Millions of Dollars | ||||||||
|
||||||||
Net Income (Loss) Attributable to ConocoPhillips
|
||||||||
Alaska
|
$ | 517 | 244 | |||||
Lower 48
|
240 | (71 | ) | |||||
United States
|
757 | 173 | ||||||
International
|
1,075 | 527 | ||||||
|
$ | 1,832 | 700 | |||||
Dollars Per Unit | ||||||||
Average Sales Prices
|
||||||||
Crude oil and natural gas liquids (per barrel)
|
||||||||
United States
|
$ | 70.40 | 37.68 | |||||
International
|
73.08 | 42.67 | ||||||
Total consolidated operations
|
71.89 | 40.39 | ||||||
Equity affiliates
|
71.30 | 39.92 | ||||||
Total E&P
|
71.86 | 40.37 | ||||||
Synthetic oil (per barrel)
|
||||||||
International
|
78.67 | 45.69 | ||||||
Bitumen (per barrel)
|
||||||||
International
|
59.18 | 21.10 | ||||||
Equity affiliates
|
56.15 | 24.64 | ||||||
Total E&P
|
56.57 | 24.04 | ||||||
Natural gas (per thousand cubic feet)
|
||||||||
United States
|
5.21 | 3.82 | ||||||
International
|
5.71 | 5.87 | ||||||
Total consolidated operations
|
5.51 | 4.98 | ||||||
Equity affiliates
|
2.67 | 2.10 | ||||||
Total E&P
|
5.45 | 4.93 | ||||||
Millions of Dollars | ||||||||
Worldwide Exploration Expenses
|
||||||||
General and administrative; geological and geophysical; and lease rentals
|
$ | 250 | 102 | |||||
Leasehold impairment
|
40 | 43 | ||||||
Dry holes
|
93 | 80 | ||||||
|
$ | 383 | 225 | |||||
32
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Thousands of Barrels Daily | ||||||||
Operating Statistics
|
||||||||
Crude oil and Natural gas liquids produced
|
||||||||
Alaska
|
247 | 275 | ||||||
Lower 48
|
156 | 163 | ||||||
United States
|
403 | 438 | ||||||
Canada
|
41 | 40 | ||||||
Europe
|
235 | 259 | ||||||
Asia Pacific/Middle East
|
144 | 140 | ||||||
Africa
|
78 | 78 | ||||||
Other areas
|
- | 8 | ||||||
Total consolidated operations
|
901 | 963 | ||||||
Equity affiliates
|
||||||||
Russia
|
57 | 49 | ||||||
|
958 | 1,012 | ||||||
|
||||||||
Synthetic oil produced
|
||||||||
Consolidated operations—Canada
|
22 | 23 | ||||||
|
||||||||
Bitumen produced
|
||||||||
Consolidated operations—Canada
|
8 | 7 | ||||||
Equity affiliates—Canada
|
52 | 35 | ||||||
|
60 | 42 | ||||||
Millions of Cubic Feet Daily | ||||||||
Natural gas produced*
|
||||||||
Alaska
|
94 | 92 | ||||||
Lower 48
|
1,705 | 2,027 | ||||||
United States
|
1,799 | 2,119 | ||||||
Canada
|
1,021 | 1,066 | ||||||
Europe
|
961 | 1,001 | ||||||
Asia Pacific/Middle East
|
716 | 713 | ||||||
Africa
|
138 | 112 | ||||||
Total consolidated operations
|
4,635 | 5,011 | ||||||
Equity affiliates
|
||||||||
Asia Pacific/Middle East
|
91 | 76 | ||||||
|
4,726 | 5,087 | ||||||
33
34
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Millions of Dollars | ||||||||
|
||||||||
Net Income Attributable to ConocoPhillips*
|
$ | 77 | 123 | |||||
*Includes DCP Midstream-related earnings:
|
$ | 53 | 90 |
Dollars Per Barrel | ||||||||
Average Sales Prices
|
||||||||
U.S. natural gas liquids*
|
||||||||
Consolidated
|
$ | 48.93 | 26.04 | |||||
Equity affiliates
|
45.65 | 23.86 | ||||||
Thousands of Barrels Daily | ||||||||
Operating Statistics
|
||||||||
Natural gas liquids extracted*
|
186 | 172 | ||||||
Natural gas liquids fractionated**
|
159 | 160 | ||||||
35
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Millions of Dollars | ||||||||
Net Income (Loss) Attributable to ConocoPhillips
|
||||||||
United States
|
$ | 12 | 98 | |||||
International
|
(16 | ) | 107 | |||||
|
$ | (4 | ) | 205 | ||||
Dollars Per Gallon | ||||||||
U.S. Average Wholesale Prices*
|
||||||||
Gasoline
|
$ | 2.17 | 1.39 | |||||
Distillates
|
2.14 | 1.40 | ||||||
Thousands of Barrels Daily | ||||||||
Operating Statistics
|
||||||||
Refining operations*
|
||||||||
United States
|
||||||||
Crude oil capacity
|
1,986 | 1,986 | ||||||
Crude oil runs
|
1,742 | 1,589 | ||||||
Capacity utilization (percent)
|
88 | % | 80 | |||||
Refinery production
|
1,901 | 1,716 | ||||||
International
|
||||||||
Crude oil capacity
|
671 | 671 | ||||||
Crude oil runs
|
324 | 567 | ||||||
Capacity utilization (percent)
|
48 | % | 85 | |||||
Refinery production
|
337 | 576 | ||||||
Worldwide
|
||||||||
Crude oil capacity
|
2,657 | 2,657 | ||||||
Crude oil runs
|
2,066 | 2,156 | ||||||
Capacity utilization (percent)
|
78 | % | 81 | |||||
Refinery production
|
2,238 | 2,292 | ||||||
|
||||||||
Petroleum products sales volumes
|
||||||||
United States
|
||||||||
Gasoline
|
1,092 | 1,037 | ||||||
Distillates
|
807 | 749 | ||||||
Other products
|
366 | 328 | ||||||
|
2,265 | 2,114 | ||||||
International
|
544 | 609 | ||||||
|
2,809 | 2,723 | ||||||
36
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | * | ||||||
|
||||||||
Net Income Attributable to ConocoPhillips
|
$ | 387 | 8 | |||||
|
||||||||
Operating Statistics
|
||||||||
Crude oil production (thousands of barrels daily)
|
391 | 394 | ||||||
Natural gas production (millions of cubic feet daily)
|
312 | 334 | ||||||
Refinery crude oil processed (thousands of barrels daily)
|
246 | 225 | ||||||
37
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
|
||||||||
Net Income Attributable to ConocoPhillips
|
$110 | 23 | ||||||
38
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Net Income (Loss) Attributable to ConocoPhillips
|
||||||||
Power
|
$ | 29 | 24 | |||||
Other
|
(23 | ) | (24 | ) | ||||
|
$ | 6 | - | |||||
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
Net Loss Attributable to ConocoPhillips
|
||||||||
Net interest
|
$ | (222 | ) | (190 | ) | |||
Corporate general and administrative expenses
|
(36 | ) | (41 | ) | ||||
Other
|
(52 | ) | (28 | ) | ||||
|
$ | (310 | ) | (259 | ) | |||
39
Millions of Dollars | ||||||||
March 31 | December 31 | |||||||
2010 | 2009 | |||||||
|
||||||||
Short-term debt
|
$ | 2,763 | 1,728 | |||||
Total debt*
|
$ | 28,988 | 28,653 | |||||
Total equity
|
$ | 63,417 | 62,613 | |||||
Percent of total debt to capital**
|
31 | % | 31 | |||||
Percent of floating-rate debt to total debt
|
10 | % | 9 | |||||
40
41
• | Qatargas 3 : We own a 30 percent interest in Qatargas 3, an integrated project to produce and liquefy natural gas from Qatar’s North Field. The other participants in the project are affiliates of Qatar Petroleum (68.5 percent) and Mitsui & Co., Ltd. (1.5 percent). Our interest is held through a jointly owned company, Qatar Liquefied Gas Company Limited (3), for which we use the equity method of accounting. Qatargas 3 secured project financing of $4 billion in December 2005, consisting of $1.3 billion of loans from export credit agencies (ECA), $1.5 billion from commercial banks, and $1.2 billion from ConocoPhillips. The ConocoPhillips loan facilities have substantially the same terms as the ECA and commercial bank facilities. Prior to project completion certification, all loans, including the ConocoPhillips loan facilities, are guaranteed by the participants, based on their respective ownership interests. Accordingly, our maximum exposure to this financing structure is $1.2 billion. Upon completion certification, currently expected in 2011, all project loan facilities, including the ConocoPhillips loan facilities, will become nonrecourse to the project participants. At March 31, 2010, Qatargas 3 had approximately $3.8 billion outstanding under all the loan facilities, of which ConocoPhillips provided $1.1 billion, and an additional $91 million of accrued interest. | ||
• | Rockies Express Pipeline : In June 2006, we issued a guarantee for our ownership percentage of $2 billion in credit facilities issued to Rockies Express Pipeline LLC, operated by Kinder Morgan Energy Partners, L.P. Rockies Express completed construction of a natural gas pipeline across a portion of the United States in November 2009. At March 31, 2010, Rockies Express had no amount outstanding under the credit facilities. In April 2010, the credit facilities were reduced to $200 million and our guarantee was released. |
42
Millions of Dollars | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
2010 | 2009 | |||||||
E&P
|
||||||||
United States—Alaska
|
$ | 183 | 254 | |||||
United States—Lower 48
|
279 | 751 | ||||||
International
|
1,388 | 1,371 | ||||||
|
1,850 | 2,376 | ||||||
Midstream
|
- | 1 | ||||||
R&M
|
||||||||
United States
|
124 | 408 | ||||||
International
|
68 | 88 | ||||||
|
192 | 496 | ||||||
LUKOIL Investment
|
- | - | ||||||
Chemicals
|
- | - | ||||||
Emerging Businesses
|
1 | 17 | ||||||
Corporate and Other
|
28 | 16 | ||||||
|
$ | 2,071 | 2,906 | |||||
United States
|
$ | 614 | 1,430 | |||||
International
|
1,457 | 1,476 | ||||||
|
$ | 2,071 | 2,906 | |||||
• | Oil and natural gas developments in the Lower 48, including San Juan and Permian Basins, Bakken and Barnett trends, and exploration activities in the deepwater Gulf of Mexico and Eagle Ford shale position in Texas. | ||
• | Alaska activities related to the Prudhoe Bay and Kuparuk Fields, as well as the Alpine Field and satellites on the Western North Slope. | ||
• | Oil sands projects and ongoing natural gas projects in Canada. | ||
• | Further development of coalbed methane projects associated with the APLNG joint venture in Australia. | ||
• | Qatargas 3 Project in Qatar. | ||
• | In Asia Pacific, Bohai Bay in China, Bayu Undan in the Timor Sea, new fields offshore Malaysia and the Darwin LNG facility in Australia. | ||
• | In the North Sea, the Ekofisk Area, Greater Britannia Fields and development of the Jasmine discovery in the J Block. |
43
• | The Kashagan Field in the Caspian Sea. | ||
• | Onshore developments in Nigeria and Algeria. | ||
• | Exploration activities in Australia’s Browse Basin, Kazakhstan’s Block N and offshore eastern Canada. |
44
45
• | Fluctuations in crude oil, natural gas and natural gas liquids prices, refining and marketing margins and margins for our chemicals business. | ||
• | Potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas development projects due to operating hazards, drilling risks and the inherent uncertainties in predicting oil and gas reserves and oil and gas reservoir performance. | ||
• | Unsuccessful exploratory drilling activities or the inability to obtain access to exploratory acreage. | ||
• | Failure of new products and services to achieve market acceptance. | ||
• | Unexpected changes in costs or technical requirements for constructing, modifying or operating facilities for exploration and production, manufacturing, refining or transportation projects. | ||
• | Unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including synthetic crude oil and chemicals products. | ||
• | Lack of, or disruptions in, adequate and reliable transportation for our crude oil, natural gas, natural gas liquids, LNG and refined products. | ||
• | Inability to timely obtain or maintain permits, including those necessary for construction of LNG terminals or regasification facilities, or refinery projects; comply with government regulations; or make capital expenditures required to maintain compliance. | ||
• | Failure to complete definitive agreements and feasibility studies for, and to timely complete construction of, announced and future exploration and production, LNG, refinery and transportation projects. | ||
• | Potential disruption or interruption of our operations due to accidents, extraordinary weather events, civil unrest, political events or terrorism. | ||
• | International monetary conditions and exchange controls. | ||
• | Substantial investment or reduced demand for products as a result of existing or future environmental rules and regulations. | ||
• | Liability for remedial actions, including removal and reclamation obligations, under environmental regulations. | ||
• | Liability resulting from litigation. | ||
• | General domestic and international economic and political developments, including armed hostilities; expropriation of assets; changes in governmental policies relating to crude oil, natural gas, natural gas liquids or refined product pricing, regulation or taxation; other political, economic or diplomatic developments; and international monetary fluctuations. | ||
• | Changes in tax and other laws, regulations (including alternative energy mandates), or royalty rules applicable to our business. |
46
• | Limited access to capital or significantly higher cost of capital related to uncertainty in the domestic or international financial markets. | ||
• | Delays in, or our inability to implement, our recently announced asset disposition plan. | ||
• | Inability to obtain economical financing for projects, construction or modification of facilities and general corporate purposes. | ||
• | The operation and financing of our midstream and chemicals joint ventures. | ||
• | The factors generally described in Item 1A—Risk Factors in our 2009 Annual Report on Form 10-K. |
47
48
Millions of Dollars | ||||||||||||||||
Total Number of | Approximate Dollar | |||||||||||||||
Shares Purchased | Value of Shares | |||||||||||||||
as Part of Publicly | that May Yet Be | |||||||||||||||
Total Number of | Average Price | Announced Plans | Purchased Under the | |||||||||||||
Period | Shares Purchased | * | Paid per Share | or Programs | Plans or Programs | |||||||||||
|
||||||||||||||||
January 1-31, 2010
|
1,234 | $ | 48.33 | - | - | |||||||||||
February 1-28,
2010
|
1,664 | 49.62 | - | - | ||||||||||||
March 1-31, 2010
|
7,009 | 51.05 | - | - | ||||||||||||
Total
|
9,907 | $ | 50.47 | - | ||||||||||||
49
12 | Computation of Ratio of Earnings to Fixed Charges. | |
18 | Preferability Letter Regarding Change in Accounting Principle. | |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |
32 | Certifications pursuant to 18 U.S.C. Section 1350. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Schema Document. | |
101.CAL | XBRL Calculation Linkbase Document. | |
101.LAB | XBRL Labels Linkbase Document. | |
101.PRE | XBRL Presentation Linkbase Document. |
50
CONOCOPHILLIPS
|
||||
/s/ Glenda M. Schwarz | ||||
Glenda M. Schwarz | ||||
Vice President and Controller
(Chief Accounting and Duly Authorized Officer) |
51
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
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DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
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No information found
Customers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
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