Conoco Second Quarter Earnings Up 32 Percent.Business Editors HOUSTON--(BUSINESS WIRE)--July 23, 2001 Conoco (NYSE NYSE See: New York Stock Exchange :COCA coca (kō`kə), common name for shrubs of the genus Erythroxylum, particularly E. coca, of the family Erythroxylaceae, and found abundantly in upland regions and on mountain slopes of South America, as well as in Australia, India, ) (NYSE:COCB) -- The company said the recently completed $6 billion acquisition of Gulf Canada increases its worldwide reserves by 40 percent and production by 32 percent, including syncrude, and propels Southeast Asia into core area status with the addition of a 72-percent interest in Gulf Indonesia Resources Limited. In addition, the company is anxious to exploit an additional 1.2 billion barrels of oil equivalent (BOE) in probable reserves. -- In Saudi Arabia, Conoco was invited to participate in the Core Venture 3 Natural Gas Initiative that spans the gas value chain from wellhead to market. It includes exploration in the relatively unexplored Rub Al-Khali region, production, gas gathering, processing, transmission and sales. It also involves participation in petrochemical and power/desalination plants. -- Conoco Indonesia began natural gas deliveries to Singapore-- from Indonesia's South Natuna Sea Block B, making fully operational a multi-party sales agreement for 325 million cubic feet per day of natural gas over 22 years. -- Vietnam continues to become an increasingly important part of the company's newly established core area in Southeast Asia. Production has increased in the Rang Dong field by 8 percent over last quarter as a result of an ongoing successful appraisal drilling program and now stands at 50,000 gross barrels per day (bpd). Conoco owns a 36 percent interest in the field. -- U.K. government approval was granted to develop five natural gas discoveries adjacent to the Caister and Murdoch fields, with potential net production of 300 billion cubic feet expected over the life of the fields. Production should begin in late 2002. -- During the quarter, the company sold additional assets, including retail units and natural gas facilities in the United States, and the company's downstream marketing operation in Spain. Year-to-date, proceeds from dispositions amount to almost $100 million. -- In emerging businesses, plans were announced to construct a $75 million natural gas-to-liquids demonstration plant in Ponca City, Okla. The plant, with design capacity of 400 barrels per day, will convert natural gas into sulfur-free diesel, jet fuel and other products and is scheduled for completion in 2002. -- The carbon fibers business unit was renamed Cevolution(R), emphasizing the revolutionary nature of products that use a less-expensive feedstock for a variety of high-volume potential applications in the construction, automotive and electronics industries. Customer interest continues to expand as the company's first plant nears completion early next year. -- For the fourth consecutive year, Conoco was rated the safest global energy company by the American Petroleum Institute's (API) annual survey of Occupational Injuries and Illnesses in the Petroleum Industry. It was the 16th time in 22 years that Conoco was named the safest global energy company by the API. -- Conoco has been named to the FTSE4Good U.S. 100 Index, a stock index representing the 100 largest U.S. companies with high standards of corporate social responsibility. Conoco was the only oil and gas company selected. The index is jointly owned by the London Stock Exchange and the Financial Times. Conoco (NYSE: COCA) (NYSE: COCB) today said that strong refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar margins and natural gas prices, along with higher production, led to another outstanding quarter. Net income before special items for the quarter was $606 million, or 95 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , 32 percent above last year's record second quarter of $460 million, or 73 cents per share. Net income increased to $552 million, or 87 cents per share, up 21 percent from $456 million, or 72 cents per share, earned during the same period last year. Revenue for the quarter totaled $10.4 billion, up 10 percent from $9.5 billion last year. "Not only did we have an excellent quarter financially, but several significant company-shaping events occurred during the period," said Archie (ARCHIvE) An earlier Unix utility used to search for file names on Internet FTP sites. Considered by some as the first search engine, in its heyday before the Web, there were approximately 30 Archie servers throughout the Internet that maintained catalogs of files available W. Dunham Dunham is a surname, and may refer to
v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. as a major operating area. Importantly, an impressive inventory of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth opportunities was added to our portfolio with the acquisition," he said. "We were one of a select few international energy companies to receive an invitation from the Kingdom of Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. to participate in
the country's Natural Gas Initiative, a step that could have
far-reaching far-reach·ingadj. Having a wide range, influence, or effect: the far-reaching implications of a major new epidemic. effects on our activities in the Middle East," he noted. "Last week our Board approved a plan to convert Conoco's two classes of common stock into a new, single class of common stock. If approved by stockholders, this action will reduce shareholder confusion and increase liquidity in our common stock, which we believe should translate (1) To change one language into another; for example, assemblers, compilers and interpreters translate source language into machine language. (2) In computer graphics, to move an image on screen without rotating it. into stronger investor interest," he said. "Finally, our U.K. Humber refinery The Humber Refinery is an oil refinery owned by ConocoPhillips. It is located at South Killingholme, North Lincolnshire in the United Kingdom. Situated approximately 10 miles north west of Grimsby, it processes approximately 221,000 barrels of crude oil per day. is back onstream OnStream Holdings of the Netherlands was spun off from Philips in 1998 and went bankrupt for a second time in 2003. [1] As a result of its first bankruptcy in 2001, the company was split into two parts, OnStream Data and OnStream MST. following a fire in April," Dunham said. "Despite that setback setback In architecture, a steplike recession in the profile of a high-rise building. Usually dictated by building codes to allow sunlight to reach streets and lower floors, the building must take another step back from the street for every specified added height interval. , downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). produced record earnings in the quarter on exceptionally strong U.S. refining margins." For the first half of the year, net income before special items totaled $1.2 billion, or $1.92 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, up 44 percent from $851 million and $1.34 per share in 2000. Revenue exceeded $21 billion, up 16 percent from $18.2 billion last year. The following table lists highlights for the second quarter and first six months of 2000 and 2001.
FINANCIAL AND OPERATING HIGHLIGHTS
(In millions of dollars, except per diluted
share and production data)
SECOND QUARTER FIRST SIX MONTHS
---------------------- ----------------------
2001 2000 Change 2001 2000 Change
Net Income Before ------ ------ ------ ------ ------ ------
Special Items 606 460 32% 1,222 851 44%
Net Income Before
Special Items
($ per share) .95 .73 30% 1.92 1.34 43%
Net Income 552 456 21% 1,205 855 41%
Net Income
($ per share) .87 .72 21% 1.90 1.35 41%
Diluted Shares
Outstanding
(millions of shares) 636 634 636 633
Revenues 10,433 9,506 10% 21,020 18,197 16%
Total Net Production
(MBOED) 670 645 4% 677 664 2%
Key business highlights for the quarter included: -- The company said the recently completed $6 billion acquisition of Gulf Canada increases its worldwide reserves by 40 percent and production by 32 percent, including syncrude, and propels Southeast Asia into core area status with the addition of a 72-percent interest in Gulf Indonesia Resources Limited. In addition, the company is anxious to exploit an additional 1.2 billion barrels of oil equivalent (BOE) in probable reserves. -- In Saudi Arabia, Conoco was invited to participate in the Core Venture 3 Natural Gas Initiative that spans the gas value chain from wellhead to market. It includes exploration in the relatively unexplored Rub Al-Khali region, production, gas gathering, processing, transmission and sales. It also involves participation in petrochemical and power/desalination plants. -- Conoco Indonesia began natural gas deliveries to Singapore-- from Indonesia's South Natuna Sea Block B, making fully operational a multi-party sales agreement for 325 million cubic feet per day of natural gas over 22 years. -- Vietnam continues to become an increasingly important part of the company's newly established core area in Southeast Asia. Production has increased in the Rang Dong field by 8 percent over last quarter as a result of an ongoing successful appraisal drilling program and now stands at 50,000 gross barrels per day (bpd). Conoco owns a 36 percent interest in the field. -- U.K. government approval was granted to develop five natural gas discoveries adjacent to the Caister and Murdoch fields, with potential net production of 300 billion cubic feet expected over the life of the fields. Production should begin in late 2002. -- During the quarter, the company sold additional assets, including retail units and natural gas facilities in the United States, and the company's downstream marketing operation in Spain. Year-to-date, proceeds from dispositions amount to almost $100 million. -- In emerging businesses, plans were announced to construct a $75 million natural gas-to-liquids demonstration plant in Ponca City, Okla. The plant, with design capacity of 400 barrels per day, will convert natural gas into sulfur-free diesel, jet fuel and other products and is scheduled for completion in 2002. -- The carbon fibers business unit was renamed Cevolution(R), emphasizing the revolutionary nature of products that use a less-expensive feedstock for a variety of high-volume potential applications in the construction, automotive and electronics industries. Customer interest continues to expand as the company's first plant nears completion early next year. -- For the fourth consecutive year, Conoco was rated the safest global energy company by the American Petroleum Institute's (API) annual survey of Occupational Injuries and Illnesses in the Petroleum Industry. It was the 16th time in 22 years that Conoco was named the safest global energy company by the API. -- Conoco has been named to the FTSE4Good U.S. 100 Index, a stock index representing the 100 largest U.S. companies with high standards of corporate social responsibility. Conoco was the only oil and gas company selected. The index is jointly owned by the London Stock Exchange and the Financial Times. Special Items The only special item during the quarter was a charge of $54 million for repairs and other costs associated with the incident at the Humber refinery. During the same period in 2000, a $4 million charge was recorded for a legal settlement associated with the separation agreement from DuPont Dupont, DuPont, Du Pont, or du Pont may refer to: Companies
v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: business. The following commentary compares segment results for the second quarter with the results for the same period in 2000, excluding the earnings impact of special items. Upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger Upstream earned $493 million, 24 percent higher than last year, driven by strong worldwide natural gas prices and margins, as well as higher international crude oil volumes. Higher operating costs operating costs npl → gastos mpl operacionales related to volume and price offset some of the improvement. Natural gas and crude oil hedges initiated with the Gulf Canada acquisition announcement generated a $24 million gain during the period. Currently, the hedging program covers the equivalent of about 85 percent of the acquired production through the end of 2002. Exploration expenses totaled $56 million, down 3 percent, as higher exploration expenditures were offset by lower dry hole costs. U.S. upstream earned $249 million, up 83 percent, while international upstream earnings decreased 7 percent to $244 million on higher tariffs This is a list of tariffs and trade legislation:
The company's worldwide net realized crude oil price decreased 5 percent to $23.82 per barrel. The worldwide net realized natural gas price was up 52 percent to $3.89 per thousand cubic feet (mcf), driven by a 68 percent increase in U.S. gas prices to $4.47 per mcf. International gas prices were 35 percent higher at $3.33 per mcf. Overall, total production of 670,000 BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip per day for the quarter rose 4 percent, from 645,000 BOE per day during the same period in 2000. Worldwide petroleum liquids production of 384,000 bpd was up 6 percent versus the previous year, on higher production from Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. , Vietnam Vietnam (vēĕt`näm), officially Socialist Republic of Vietnam, republic (v), 128,400 sq mi (332,642 sq km), Southeast Asia. Occupying the eastern coastline of the Southeast Asian peninsula, Vietnam is bounded by China on the north, by Laos and the U.K. Worldwide natural gas production was 1.7 billion cubic feet per day, up slightly from last year. U.S. natural gas volumes fell 1 percent to 831 million cubic feet per day. International natural gas production averaged 885 million cubic feet per day, up 2 percent, on strong U.K production. Downstream Downstream had record quarterly earnings of $227 million, up $86 million, or 61 percent, despite the negative earnings impact of the Humber refinery fire, which occurred in April. U.S. downstream earnings of $221 million more than doubled last year's earnings of $102 million. U.S. operations took advantage of very strong refining margins. Refinery throughputs were down 6 percent, to 536,000 bpd, mainly due to turnarounds at the Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. and Billings refineries The Billings Refinery is a oil refinery located in Billings, Montana. The refinery is currently owned and operated by ConocoPhillips (NYSE: COP). The complex is capable of refining 62,000 barrels of crude oil per day. . Results were also mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by higher operating costs, particularly higher energy costs. International downstream earnings decreased $33 million to $6 million due to downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. associated with the incident at the Humber refinery. The lost profit opportunity at the Humber refinery impacted earnings by about $56 million after reflecting $26 million of business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril coverage. The 9 cents per share operating impact was consistent with earlier estimates. As a result, international throughputs were 187,000 bpd, down 41 percent. Worldwide refined product sales totaled 1.3 million bpd, down 5 percent, driven by a 19 percent decrease in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .Emerging Businesses The cost of expanding the company's Emerging Businesses increased as expected to $17 million during the quarter, due to higher research and development costs for Conoco Cevolution(R)and natural gas refining ventures. Corporate Corporate operating and non-operating expenses totaled $97 million, up $28 million, or 41 percent, from the same period last year largely related to foreign currency movements. Other Financial Highlights For the first half of the year, the company generated $1.6 billion of cash provided by operations, $509 million more than last year. Capital expenditures totaled $565 million, bringing year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. spending to $971 million, equivalent to 40 percent of the year's budget. Cash at quarter-end rose to $593 million, while debt remained unchanged at $4.4 billion. The net debt ratio decreased to 37 percent from 42 percent at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Earlier this month, the $6 billion Gulf Canada acquisition was completed using a combination of cash and the assumption of $1.5 billion in debt. The company arranged a $4.5 billion bridge credit facility to finance the transaction. In response, the rating agencies lowered Conoco's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. with a stable outlook and maintained the ratings as investment grade. At the same, the company's short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. ratings were affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . "We announced a commitment to reduce debt by some $2.5 billion over the next 18 months through reduced capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , asset dispositions and utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of excess cash," said Bob Goldman Gold·man , Emma 1869-1940. Russian-born American anarchist. Jailed repeatedly for her advocacy of birth control and opposition to military conscription, she was deported to the Soviet Union in 1919. , Conoco's Chief Financial Officer. Near Term Outlook In the third quarter, including Gulf Canada, production is expected to be up about 35 percent, including syncrude This article is about Syncrude Canada Ltd.. For synthetic crude oil, see synthetic crude. Syncrude Canada Ltd. is the world's largest producer of synthetic crude oil from oil sands and the largest single source producer in Canada. . Looking ahead, Dunham said: "Third quarter earnings are not expected to be as strong, as prices and margins have retreated re·treat n. 1. a. The act or process of withdrawing, especially from something hazardous, formidable, or unpleasant. b. The process of going backward or receding from a position or condition gained. 2. in recent weeks. Crude oil prices appear to have leveled off in the low to mid- mid- pref. Middle: midbrain. $20s on softer demand. Inventories of refined products and natural gas have returned to normal levels, with natural gas prices settling around $3.00. Nevertheless, prices and margins remain relatively robust from a historical perspective, and we still believe 2001 earnings will exceed last year's record," he noted. "Our explorers are performing well and we have some very exciting wells to drill between now and the end of the year, including high-potential Adj. 1. high-potential - operating on or powered by a high voltage; "a high-voltage generator" high-voltage high-tension - subjected to or capable of operating under relatively high voltage; "high-tension wire" prospects in the deepwater Deepwater or Deep Water may refer to:
Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , Vietnam, Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. and Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. . We have further appraisal drilling scheduled on the Gulf of Mexico Magnolia Magnolia, city, United States Magnolia (măgnō`lyə), city (1990 pop. 11,151), seat of Columbia co., SW Ark.; inc. 1855. Its oil industry has been important since 1938. and Princess discoveries, Vietnam's Sutu Den prospect and Rang Dong field. We are about to begin drilling the first of four appraisal wells on our Corocoro discovery in Venezuela's Gulf of Paria Pa·ri·a , Gulf of An inlet of the Caribbean Sea between Trinidad and the northeast coast of Venezuela. ," he concluded. Conoco is a major, integrated energy company active in more than 40 countries. For more information, the company's financial teleconference will be broadcast live today on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.conoco.com at 1:30 p.m. Central time (2:30 p.m. Eastern). Additional financial and operating results are available on the company's website. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about Conoco's exploration, production, refining, and other operating and financial plans and earnings results. These statements are not guarantees of future performance, involve certain risks, uncertainties, and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Actual outcomes and results may differ materially from what is expressed herein. Among the factors that could cause such differences are changes in crude oil and natural gas prices; changes in refining and marketing margins; potential failure to achieve, and potential delays in achieving, expected reserve or production levels from existing and future oil and gas development projects due to operating hazards
Hazards is an independent, union-friendly magazine based in Sheffield, England, which has won major international awards. , drilling risks, and the inherent uncertainties in interpreting engineering data relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc underground accumulations of oil and gas; unsuccessful exploratory drilling activities; unexpected delays or difficulties in constructing or repairing company manufacturing and refining facilities; general domestic and international economic and political conditions; the ability to meet government regulations; potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. or interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of the Company's facilities due to accidents or political events and other matters detailed in Conoco's publicly available filings with the Securities and Exchange Commission. Cautionary Note to U.S. Investors -- The United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. that a company has demonstrated by actual production or conclusive Determinative; beyond dispute or question. That which is conclusive is manifest, clear, or obvious. It is a legal inference made so peremptorily that it cannot be overthrown or contradicted. formation tests to be economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: and legally producible under existing economic and operating conditions. Syncrude proven reserves are distinguished from proved oil and natural gas reserves because SEC regulations define syncrude as mining-related and not part of conventional oil and natural gas reserves. We use certain terms in this press release, such as "probable reserves" that the SEC's guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. strictly prohibit pro·hib·it tr.v. pro·hib·it·ed, pro·hib·it·ing, pro·hib·its 1. To forbid by authority: Smoking is prohibited in most theaters. See Synonyms at forbid. 2. us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , File No. 1-14521, available from us at 600 North Dairy Ashford Ash·ford , Evelyn Born 1957. American athlete. A sprinter on five Olympic track teams, she won nine Olympic medals, including a gold medal in the 100-meter dash and three gold medals in the four-by-100-meter relay. Road, Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the 77079. You can also obtain this form from the SEC by calling 1-800-SEC-0330 Conoco intends to call a special meeting of its stockholders to vote upon the combination of its two classes of common stock into a single class. Conoco urges its stockholders to read the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. relating to the special meeting because it will contain important information about the proposal and the interests of the participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies. A free copy of the preliminary proxy statement and other documents filed electronically by Conoco with the SEC can be obtained at the SEC's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Conoco stockholders may also obtain a free copy of the preliminary proxy statement and these other documents by directing requests to Conoco Shareholder Relations Department.
CONOCO INC.
STATEMENT OF INCOME (unaudited)
(millions of dollars, except per share)
Three Months Ended Six Months Ended
June 30 June 30
------------------------ ------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Sales and Other
Operating
Revenues (a) 10,260 9,357 20,795 17,881
Income from Equity
Affiliates 59 77 80 157
Other Income 114(1) 72 145(1)(2) 159(3)
-------- -------- -------- --------
Total Revenues 10,433 9,506 21,020 18,197
Cost of Goods Sold 6,227 5,758 12,756 10,882
Operating Expenses 700(1) 547 1,314(1) 1,053(4)
Selling, General
and Administrative
Expenses 208 193(5) 404 381
Exploration
Expenses (b) 56 58 93 95
Depreciation,
Depletion, and
Amortization 338 309 691 648(6)
Taxes Other Than
On Income (a) 1,736 1,778 3,374 3,480
Interest and Debt
Expense 67 89 142 172
-------- -------- -------- --------
Income Before
Income Taxes 1,101 774 2,246 1,486
Provision for
Income Taxes 549 318 1,078 631
-------- -------- -------- --------
Income Before
Accounting
Change 552 456 1,168 855
-------- -------- -------- --------
Cumulative Effect
of Accounting
Change -- -- 37(2) --
-------- -------- -------- --------
Net Income 552 456 1,205 855
======== ======== ======== ========
Earnings Before
Accounting Change
Per Share of
Common Stock:
Basic $.88 $.73 $1.87 $1.37
Diluted $.87 $.72 $1.84 $1.35
Earnings Per Share
of Common Stock:
Basic $.88 $.73 $1.93 $1.37
Diluted $.87 $.72 $1.90 $1.35
Earnings Before
Special Items Per
Share of
Common Stock:
Basic $.97 $.74 $1.96 $1.36
Diluted $.95 $.73 $1.92 $1.34
Average Shares
of Stock
Outstanding:
Basic 625,428,654 624,592,364 625,066,622 625,104,421
Diluted 636,225,662 633,664,393 635,540,918 633,368,880
(a) Includes Petroleum Excise Taxes.
(b) Includes Exploration O&O, Dry Hole Costs, Depreciation, Impairment
of Unproved Properties and Taxes Other Than On Income.
Pretax Impact of Special Items:
(1) Includes $50 in costs associated with the Humber refinery incident
($8 in Other Income and $58 in Operating Expenses).
(2) Accounting change is the cumulative transition impact of adoption
on January 1, 2001 of SFAS Nos. 133 and 138 "Accounting for
Derivative Instruments and Hedging Activities." This amount
primarily reflects a pretax gain of $64 ($40 after-tax) related to
changes in the fair value of certain crude oil put options from
their purchase date to the January 1 adoption date of these
standards. Included in "Other Income" is a $83 pretax expense ($52
after-tax) related to changes in the fair value of these same
crude oil put options from January 1 to the June 30 reporting
date.
(3) Includes $42 in gains from the sale of natural gas processing
assets in the U.S.
(4) Includes $25 of U.S. Downstream litigation provisions.
(5) Includes $6 of settlement costs associated with the separation
agreement from DuPont related to a discontinued business.
(6) Includes $5 write-down of certain refinery assets in the U.S.
EARNINGS BY SEGMENT (unaudited)
(millions of dollars)
Three Months Ended Six Months Ended
June 30 June 30
------------------- -------------------
2001 2000 2001 2000
------ ------ ------ ------
Upstream
United States 249 136 581(1) 279(2)
International 244 263 532(3) 560
------ ------ ------ ------
Total Upstream 493 399 1,113 839
Downstream
United States 221 102 289(4) 91(5)
International (48)(6) 39 5(6) 88
------ ------ ------ ------
Total Downstream 173 141 294 179
Emerging Businesses (17) (11) (34) (18)
Corporate (31) (29)(7) (55) (51)(7)
------ ------ ------ ------
Total ATOI 618 500 1,318 949
Non-Operating (66) (44) (113) (94)
------ ------ ------ ------
Net Income 552 456 1,205 855
====== ====== ====== ======
(1) Includes $8 gain from transition adjustment for implementation of
SFAS 133 and 138.
(2) Includes $27 in gains from the sale of natural gas processing
assets in the U.S.
(3) Includes $32 gain from transition adjustment for implementation of
SFAS 133 and 138.
(4) Includes $3 charge from transition adjustment for implementation
of SFAS 133 and 138.
(5) Includes $16 of litigation provisions and $3 for the write-down of
related U.S. refinery assets.
(6) Includes $54 in costs associated with the Humber refinery
incident.
(7) Includes $4 of settlement costs associated with the separation
agreement from DuPont related to a discontinued business.
EARNINGS BY SEGMENT BEFORE SPECIAL ITEMS (unaudited)
(millions of dollars)
Three Months Ended Six Months Ended
June 30 June 30
------------------- -------------------
2001 2000 2001 2000
------ ------ ------ ------
Upstream
United States 249 136 573 252
International 244 263 500 560
------ ------ ------ ------
Total Upstream 493 399 1,073 812
Downstream
United States 221 102 292 110
International 6 39 59 88
------ ------ ------ ------
Total Downstream 227 141 351 198
Emerging Businesses (17) (11) (34) (18)
Corporate (31) (25) (55) (47)
------ ------ ------ ------
Total ATOI 672 504 1,335 945
Non-Operating (66) (44) (113) (94)
------ ------ ------ ------
Net Income 606 460 1,222 851
====== ====== ====== ======
CAPITAL EXPENDITURES AND INVESTMENTS (unaudited)
(millions of dollars)
Three Months Ended Six Months Ended
June 30 June 30
--------------- ---------------
2001 2000 2001 2000
----- ----- ----- -----
Upstream
United States 165 170 287 253
International 236 244 413 501
----- ----- ----- -----
Total Upstream 401 414 700 754
Downstream
United States 41 56 67 114
International 62 50 103 114
----- ----- ----- -----
Total Downstream 103 106 170 228
Emerging Businesses 56 42 90 68
Corporate 5 10 11 11
----- ----- ----- -----
Total 565 572 971 1,061
===== ===== ===== =====
NET EXPLORATION INVESTMENT (unaudited)
(millions of dollars)
Three Months Ended Six Months Ended
June 30 June 30
--------------- ---------------
2001 2000 2001 2000
----- ----- ----- -----
Cash Expense
United States 19 14 29 28
International 29 24 49 34
----- ----- ----- -----
Total Cash Expense 48 38 78 62
Capital
United States 25 6 35 7
International 26 76 42 81
----- ----- ----- -----
Total Capital 51 82 77 88
Total Exploration
Outlays 99 120 155 150
Exploration Asset
Sales 0 0 0 (1)
----- ----- ----- -----
Net Exploration
Investment 99 120 155 149
===== ===== ===== =====
OPERATING DATA AND PRICES (unaudited)
Three Months Ended Six Months Ended
June 30 June 30
--------------- ---------------
2001 2000 2001 2000
----- ----- ----- -----
Net Realized Crude
Oil Prices ($/Bbl) (1)
United States 24.21 26.20 24.75 26.39
International 23.75 24.93 23.29 25.04
Worldwide 23.82 25.16 23.51 25.25
Net Realized Natural
Gas Prices ($/MCF) (1)
United States 4.47 2.66 5.62 2.39
International 3.33 2.46 3.73 2.48
Worldwide 3.89 2.56 4.61 2.44
Net Petroleum Liquids
Production (MBD) (1)
United States 72 83 73 79
International 312 278 309 289
----- ----- ----- -----
Total Net Petroleum
Liquids Production 384 361 382 368
Net Natural Gas
Production (MMCFD) (1)
United States 831 837 828 825
International 885 866 940 948
----- ----- ----- -----
Total Net Natural
Gas Production 1,716 1,703 1,768 1,773
Total Net Production
(MBOED) (1) 670 645 677 664
Net NGLs Processed
(MBD) (1)
United States 55 51 49 53
International 36 44 42 33
----- ----- ----- -----
Total Net NGLs
Processed 91 95 91 86
Refinery Inputs
Processed (MBD) (1)
United States 536 570 539 559
International 187 317 278 338
----- ----- ----- -----
Total Refinery Inputs
Processed 723 887 817 897
Refined Product
Sales (MBD)
United States 1,033 1,080 970 979
International 431 521 501 507
----- ----- ----- -----
Total Refined Product
Sales 1,464 1,601 1,471 1,486
(1) Prices and volumes include equity affiliates.
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