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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):   November 2, 2023
ConocoPhillips
(Exact name of registrant as specified in its charter)
Delaware001-3239501-0562944
(State or other jurisdiction of
incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
925 N. Eldridge Parkway
Houston, Texas 77079
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code:  (281293-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 Par ValueCOPNew York Stock Exchange
7% Debentures due 2029CUSIP-718507BK1New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.
On November 2, 2023, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.  Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.Description
104Cover Page Interactive Data File (formatted as Inline XBRL and filed herewith).
2


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CONOCOPHILLIPS
/s/ Christopher P. Delk
Christopher P. Delk
Vice President, Controller and General Tax Counsel
November 2, 2023
3

Exhibit 99.1

ConocoPhillips Reports Third-Quarter 2023 Results; Announces 14% Increase in Quarterly Ordinary Dividend

HOUSTON-Nov. 2, 2023--ConocoPhillips (NYSE: COP) today reported third-quarter 2023 earnings of $2.8 billion, or $2.32 per share, compared with third-quarter 2022 earnings of $4.5 billion, or $3.55 per share. Excluding special items, third-quarter 2023 adjusted earnings were $2.6 billion, or $2.16 per share, compared with third-quarter 2022 adjusted earnings of $4.6 billion, or $3.60 per share. Special items for the current quarter were primarily comprised of a benefit related to the reversal of a tax reserve and a gain associated with the divestiture of a Lower 48 equity investment.

"ConocoPhillips continues to execute well on our returns-focused value proposition,” said Ryan Lance, chairman and chief executive officer. “For the third consecutive quarter, we achieved record production and, with the purchase of the remaining 50% interest in Surmont, raised our full-year guidance. In September, we further progressed our global LNG strategy by securing regasification capacity in the Netherlands. In October, several international projects reached first production, positioning us for 2024 and beyond. And today we announced a 14% increase in our quarterly ordinary dividend, consistent with our long-term objective to deliver top quartile growth relative to the S&P 500."

Third-Quarter Highlights and Recent Announcements

Increased the quarterly ordinary dividend by 14% to $0.58 per share.
Completed the purchase of the remaining 50% interest in Surmont in October for approximately $2.7 billion as well as future contingent payments of up to $0.4 billion CAD ($0.3 billion).
Achieved first steam at Surmont Pad 267 and startup at the second phase of Montney’s central processing facility (CPF2) in Canada.
Reached first production ahead of schedule in October at Tommeliten A and partner-operated Breidablikk and Kobra East & Gekko in Norway and partner-operated Bohai Phase 4B in China.
Further diversified LNG portfolio by signing a 15-year throughput agreement for approximately 1.5 million tonnes per annum of regasification at the Gate LNG Terminal in the Netherlands.
Delivered company and Lower 48 production of 1,806 thousand barrels of oil equivalent per day (MBOED) and 1,083 MBOED, respectively.
Generated cash provided by operating activities of $5.4 billion and cash from operations (CFO) of $5.5 billion.
Distributed $2.6 billion to shareholders through a three-tier framework, including $1.3 billion through the ordinary dividend and variable return of cash (VROC) and $1.3 billion through share repurchases.
Ended the quarter with cash and short-term investments of $9.7 billion, which included proceeds from long-term debt issuances of $2.7 billion to fund the Surmont acquisition.


Quarterly Dividend and Variable Return of Cash

ConocoPhillips announced a quarterly ordinary dividend of $0.58 per share, payable Dec. 1, 2023, to stockholders of record at the close of business on Nov. 14, 2023. ConocoPhillips paid its fourth quarter VROC of $0.60 per share on Oct. 16, 2023, to stockholders of record at the close of business on Sept. 28, 2023. Beginning in the first quarter of 2024, ConocoPhillips plans to pay its quarterly ordinary dividend and VROC concurrently and will announce such payments in the same quarter they will be paid.


ConocoPhillips Reports Third-Quarter 2023 Results; Announces 14% Increase in Quarterly Ordinary Dividend




Third-Quarter Review

Production for the third quarter of 2023 was 1,806 MBOED, an increase of 52 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, third-quarter 2023 production increased 49 MBOED or 3% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline and downtime.

Lower 48 delivered production of 1,083 MBOED, including 722 MBOED from the Permian, 232 MBOED from the Eagle Ford and 111 MBOED from the Bakken. In Canada, Surmont Pad 267 achieved first steam and Montney’s CPF2 came online, both in late September. Turnarounds were successfully completed in Norway and Alaska.

Earnings and adjusted earnings decreased from the third quarter of 2022 primarily due to lower prices. The company’s total average realized price was $60.05 per BOE, 28% lower than the $83.07 per BOE realized in the third quarter of 2022.

For the quarter, cash provided by operating activities was $5.4 billion. Excluding working capital, ConocoPhillips generated CFO of $5.5 billion and received proceeds of $0.2 billion primarily from the sale of a Lower 48 equity investment. In addition, the company funded $2.5 billion of capital expenditures and investments, paid $1.3 billion in ordinary dividends and VROC and repurchased $1.3 billion of shares.

Nine-Month Review
ConocoPhillips’ nine-month 2023 earnings were $8.0 billion, or $6.54 per share, compared with nine-month 2022 earnings of $15.4 billion, or $11.93 per share. Nine-month 2023 adjusted earnings were $7.8 billion, or $6.38 per share, compared with nine-month 2022 adjusted earnings of $14.0 billion, or $10.79 per share.
Production for the first nine months of 2023 was 1,801 MBOED, an increase of 70 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, production increased 72 MBOED or 4% from the same period a year ago. Organic growth from Lower 48 and other development programs more than offset decline and downtime.
Earnings and adjusted earnings for the first nine months of 2023 decreased from the same period a year ago primarily due to lower prices. The company’s total realized price during this period was $58.45 per BOE, 29% lower than the $82.82 per BOE realized in the first nine months of 2022.
In the first nine months of 2023, cash provided by operating activities was $14.7 billion. Excluding a $1.2 billion change in working capital, ConocoPhillips generated CFO of $15.9 billion and received disposition proceeds of $0.6 billion. The company funded $8.4 billion of capital expenditures and investments, repurchased $4.3 billion of shares and paid $4.2 billion in ordinary dividends and VROC.




ConocoPhillips Reports Third-Quarter 2023 Results; Announces 14% Increase in Quarterly Ordinary Dividend

Outlook

All guidance has been updated to reflect the acquisition of an additional 50% interest in Surmont but excludes any impacts from the previously announced APLNG transaction.

Fourth-quarter 2023 production is expected to be 1.86 to 1.90 million barrels of oil equivalent per day (MMBOED). Full-year production is expected to be approximately 1.82 MMBOED, as compared to prior guidance of 1.80 to 1.81 MMBOED, due to the Surmont acquisition.

Full-year guidance for adjusted operating cost was updated to $8.6 billion versus the prior guidance of $8.3 billion, reflecting the increased working interest at Surmont, increased Lower 48 non-operated activity and inflationary impacts primarily in the Lower 48. Full-year guidance for depreciation, depletion and amortization was updated to $8.3 billion versus prior guidance of $8.2 billion primarily due to the Surmont acquisition.

Full-year guidance for capital and adjusted corporate segment net loss remains unchanged.
ConocoPhillips will host a conference call today at 12:00 p.m. Eastern time to discuss this announcement. To listen to the call and view related presentation materials and supplemental information, go to www.conocophillips.com/investor. A recording and transcript of the call will be posted afterward.
--- # # # ---
About ConocoPhillips

ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $94 billion of total assets, and approximately 9,800 employees at Sept. 30, 2023. Production averaged 1,801 MBOED for the nine months ended Sept. 30, 2023, and proved reserves were 6.6 BBOE as of Dec. 31, 2022.

For more information, go to www.conocophillips.com.


Contacts
Dennis Nuss (media)
281-293-1149
dennis.nuss@conocophillips.com
Investor Relations
281-293-5000
investor.relations@conocophillips.com


CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, plans and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as “anticipate," “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict," “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words can be used to identify forward-looking statements. However, the absence of these words


ConocoPhillips Reports Third-Quarter 2023 Results; Announces 14% Increase in Quarterly Ordinary Dividend
does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from any ongoing military conflict, including the conflicts in Ukraine and the Middle East, and the global response to such conflict, security threats on facilities and infrastructure, or from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; insufficient liquidity or other factors, such as those listed herein, that could impact our ability to repurchase shares and declare and pay dividends such that we suspend our share repurchase program and reduce, suspend, or totally eliminate dividend payments in the future, whether variable or fixed; changes in expected levels of oil and gas reserves or production; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks or unsuccessful exploratory activities; unexpected cost increases, inflationary pressures or technical difficulties in constructing, maintaining or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; public health crises, including pandemics (such as COVID-19) and epidemics and any impacts or related company or government policies or actions; investment in and development of competing or alternative energy sources; potential failures or delays in delivering on our current or future low-carbon strategy, including our inability to develop new technologies; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships or governmental policies, including the imposition of price caps, or the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business, including any sanctions imposed as a result of any ongoing military conflict, including the conflicts in Ukraine and the Middle East; our ability to collect payments when due, including our ability to collect payments from the government of Venezuela or PDVSA; our ability to complete any announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for any announced or any future dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of the transactions or our remaining business; business disruptions following any announced or future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related directly or indirectly to our transaction with Concho Resources Inc.; the impact of competition and consolidation in the oil and gas industry; limited access to capital or insurance or significantly higher cost of capital or insurance related to illiquidity or uncertainty in the domestic or international financial markets or investor sentiment; general domestic and international economic and political conditions or developments, including as a result of any ongoing military conflict, including the conflicts in Ukraine and the Middle East; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from accidents, extraordinary weather events, civil unrest, political events, war, terrorism, cybersecurity threats or information technology failures, constraints or disruptions; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use the term “resource” in this news release that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.

Use of Non-GAAP Financial Information – To supplement the presentation of the company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this news release and the accompanying supplemental financial information contain certain financial measures that are not prepared in accordance with GAAP, including adjusted earnings (calculated on a consolidated and on a segment-level basis), adjusted earnings per share (EPS), cash from operations (CFO), adjusted operating costs and adjusted corporate segment net loss.

The company believes that the non-GAAP measure adjusted earnings (both on an aggregate and a per-share basis), adjusted operating costs and adjusted corporate segment net loss are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. Adjusted earnings is defined as earnings removing the impact of special items. Adjusted EPS is a measure of the company’s diluted net earnings per share excluding special items. Adjusted operating costs is defined as the sum of production and operating expenses, selling, general and administrative expenses, exploration general and administrative expenses, geological and geophysical, lease rentals and other exploration expenses, adjusted to exclude expenses that do not directly relate to the company’s core business operations and are included as adjustments to arrive at adjusted earnings to the extent those adjustments impact operating costs. Adjusted corporate segment net loss is defined as corporate and other segment earnings adjusted for special items. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s


ConocoPhillips Reports Third-Quarter 2023 Results; Announces 14% Increase in Quarterly Ordinary Dividend
results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.

Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.

Other Terms – This news release also contains the term pro forma underlying production. Pro forma underlying production reflects the impact of closed acquisitions and closed dispositions as of September 30, 2023. The impact of closed acquisitions and dispositions assumes a closing date of January 1, 2022. The company believes that underlying production is useful to investors to compare production reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies. Return of capital is defined as the total of the ordinary dividend, share repurchases and variable return of cash (VROC).

References in the release to earnings refer to net income.


ConocoPhillips Reports Third-Quarter 2023 Results; Announces 14% Increase in Quarterly Ordinary Dividend

ConocoPhillips
Table 1: Reconciliation of earnings to adjusted earnings
$ Millions, Except as Indicated
3Q23
3Q22
2023 YTD
2022 YTD
Pre-taxIncome
tax
After-taxPer share of
common
stock
(dollars)
Pre-taxIncome
tax
After-taxPer share of
common
stock
(dollars)
Pre-taxIncome
tax
After-taxPer share
of common
stock
(dollars)
Pre-taxIncome
tax
After-taxPer share of
common
stock
(dollars)
Earnings$2,798 2.32 $4,527 3.55 $7,950 6.54 $15,431 11.93 
Adjustments:
(Gain) loss on asset sales¹(94)(6)(100)(0.08)70 (16)54 0.04 (94)(6)(100)(0.08)(947)94 (853)(0.66)
Tax adjustments— (144)(144)(0.12)— — — — — (144)(144)(0.12)— (407)(407)(0.33)
(Gain) loss on CVE shares— — — — — — — — — — — — (251)— (251)(0.20)
Gain on debt extinguishment and exchange fees— — — — — — — — — — — — (44)52 0.01 
Transaction and restructuring expenses— — — — — — — — — — — — 28 (8)20 0.02 
(Gain) loss on FX derivative59 (12)47 0.04 — — — — 59 (12)47 0.04 10 (2)0.01 
Pending claims and settlements— — — — (20)29 0.01 — — — — (20)29 0.01 
Adjusted earnings / (loss)$2,601 2.16 $4,590 3.60 $7,753 6.38 $13,965 10.79 
1Includes 3Q23 divestiture of Lower 48 equity investment.
The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the discrete item resides.

ConocoPhillips
Table 2: Reconciliation of reported production to pro forma underlying production
In MBOED, Except as Indicated
3Q23
3Q22
2023 YTD
2022 YTD
Total Reported ConocoPhillips Production1,806 1,754 1,801 1,731 
Closed Dispositions1
— (12)(1)(27)
Closed Acquisitions 2
— 15 — 17 
Total Pro Forma Underlying Production1,806 1,757 1,800 1,721 
Estimated Uplift from 2 to 3 stream conversion3
   7 
1Includes production related to the 2022 Indonesia disposition and various Lower 48 dispositions.
2Includes production related to the acquisitions related to additional 10% shareholding interest in APLNG, additional 4% shareholding interest in Libya and a Lower 48 bolt-on acquisition.
3Estimated production impacts from the conversion of Concho two-stream contracted volumes to a three-stream (crude oil, natural gas and natural gas liquids) reporting basis, which are not included in Total Production and Total Underlying Production.



ConocoPhillips Reports Third-Quarter 2023 Results; Announces 14% Increase in Quarterly Ordinary Dividend
ConocoPhillips
Table 3: Reconciliation of net cash provided by operating activities to free cash flow
$ Millions, Except as Indicated
3Q23
2023 YTD
Net Cash Provided by Operating Activities5,445 14,702 
Adjustments:
Net operating working capital changes(23)(1,151)
Cash from operations5,468 15,853 
ConocoPhillips
Table 4: Reconciliation of production and operating expenses to adjusted operating costs
$ Millions, Except as Indicated
2023 FY Guidance
Production and operating expenses~7,700
Selling, general and administrative (G&A) expenses~700
Exploration G&A, G&G and lease rentals~200
Operating costs~8,600
Adjustments to exclude special items:
None— 
Adjusted operating costs~8,600
ConocoPhillips
Table 5: Reconciliation of adjusted corporate segment net loss
$ Millions, Except as Indicated
2023 FY Guidance
Corporate and Other earnings~(850)
Adjustments to exclude special items:
(Gain) loss on FX derivative~60
Income tax on special items~(10)
Adjusted corporate segment net loss~(800)

Exhibit 99.2
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Third-Quarter 2023 Detailed Supplemental Information

20222023
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
$ Millions, Except as Indicated
CONSOLIDATED INCOME STATEMENT
Revenues and Other Income
  Sales and other operating revenues17,762 21,161 21,013 18,558 78,494 14,811 12,351 14,250  41,412 
  Equity in earnings of affiliates426 524 561 570 2,081 499 412 388  1,299 
  Gain (loss) on dispositions817 262 (40)38 1,077 93 (1)108  200 
  Other income286 42 80 96 504 114 122 120  356 
    Total Revenues and Other Income19,291 21,989 21,614 19,262 82,156 15,517 12,884 14,866  43,267 
Costs and Expenses
  Purchased commodities6,751 9,234 9,251 8,735 33,971 6,138 4,616 5,543  16,297 
  Production and operating expenses1,581 1,741 1,799 1,885 7,006 1,779 1,886 1,995  5,660 
  Selling, general and administrative expenses187 96 148 192 623 159 205 169  533 
  Exploration expenses69 143 89 263 564 138 83 92  313 
  Depreciation, depletion and amortization1,823 1,810 1,872 1,999 7,504 1,942 2,010 2,095  6,047 
  Impairments(18)(12)— 11  12 
  Taxes other than income taxes814 1,020 843 687 3,364 576 512 536  1,624 
  Accretion on discounted liabilities61 61 60 68 250 68 68 68  204 
  Interest and debt expense217 211 199 178 805 188 179 194  561 
  Foreign currency transactions (gain) loss24 (70)(93)39 (100)(44)(14)55  (3)
  Other expenses(136)86 (1)(47)10 (23) (5)
    Total Costs and Expenses11,393 14,334 14,174 14,027 53,928 10,955 9,522 10,766  31,243 
Income before income taxes7,898 7,655 7,440 5,235 28,228 4,562 3,362 4,100  12,024 
  Income tax provision2,139 2,510 2,913 1,986 9,548 1,642 1,130 1,302  4,074 
Net Income5,759 5,145 4,527 3,249 18,680 2,920 2,232 2,798  7,950 
Net Income Per Share of Common Stock (dollars)
  Basic4.41 3.98 3.56 2.61 14.62 2.38 1.84 2.33  6.56 
  Diluted4.39 3.96 3.55 2.61 14.57 2.38 1.84 2.32  6.54 
Average Common Shares Outstanding (in thousands)*
  Basic1,301,930 1,289,791 1,256,893 1,239,277 1,274,028 1,220,228 1,207,443 1,196,641  1,208,018 
  Diluted1,307,404 1,295,844 1,269,321 1,243,037 1,278,163 1,223,355 1,210,342 1,199,746  1,211,012 
*Ending Common Shares Outstanding is 1,187,408 as of September 30, 2023, compared with 1,197,491 as of June 30, 2023.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska802 983 800 652 3,237 567 510 606  1,683 
Lower 483,547 4,456 3,542 2,557 14,102 2,378 1,581 2,257  6,216 
Canada381 418 158 (37)920 43 125  176 
Europe, Middle East and North Africa1,774 1,533 2,615 1,767 7,689 1,244 982 893  3,119 
Asia Pacific1,310 637 627 643 3,217 582 451 509  1,542 
Other International— — — (5) (3)
Corporate and Other84 (372)(304)(347)(939)(218)(200)(291) (709)
Consolidated7,898 7,655 7,440 5,235 28,228 4,562 3,362 4,100  12,024 



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20222023
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
EFFECTIVE INCOME TAX RATES
Alaska*27.1 %30.1 %27.6 %23.1 %27.4 %26.7 %27.0 %26.1 % 26.6 %
Lower 4821.4 %19.6 %25.1 %22.1 %21.9 %22.1 %22.2 %21.1 % 21.8 %
Canada23.7 %24.3 %24.9 %67.4 %22.4 %21.9 %26.6 %-48.6 % -27.3 %
Europe, Middle East and North Africa76.8 %74.9 %64.7 %70.3 %70.8 %70.6 %73.1 %71.7 % 71.7 %
Asia Pacific13.3 %17.7 %16.9 %13.6 %14.9 %10.3 %14.1 %8.9 % 10.9 %
Other International-137.8 %43.0 %2484.7 %3159.7 %2211.2 %— — 756.2 % -57.5 %
Corporate and Other-546.2 %6.2 %21.4 %17.1 %64.9 %-11.3 %75.9 %-14.3 % 12.1 %
Consolidated27.1 %32.8 %39.1 %37.9 %33.8 %36.0 %33.6 %31.8 % 33.9 %
*Alaska including taxes other than income taxes.47.8 %52.1 %48.6 %43.0 %48.4 %42.3 %41.1 %40.8 % 41.4 %


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20222023
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
$ Millions
EARNINGS BY SEGMENT
Alaska584 687 580 501 2,352 416 372 448  1,236 
Lower 482,790 3,581 2,653 1,991 11,015 1,852 1,230 1,781  4,863 
Canada291 316 119 (12)714 32 186  224 
Europe, Middle East and North Africa412 385 922 525 2,244 365 264 253  882 
Asia Pacific1,136 525 520 555 2,736 522 387 465  1,374 
Other International— — (28)(23)(51)(4)(2) (5)
Corporate and Other546 (349)(239)(288)(330)(242)(49)(333) (624)
Consolidated5,759 5,145 4,527 3,249 18,680 2,920 2,232 2,798  7,950 
SPECIAL ITEMS
Alaska23 — — 26 49 — — —  — 
Lower 4816 69 (42)16 59 — — 100  100 
Canada176 118 (12)(82)200 — — 92  92 
Europe, Middle East and North Africa— (58)— — (58)— — —  — 
Asia Pacific534 — 27 — 561 — — 52  52 
Other International— — (29)(20)(49)— — —  — 
Corporate and Other721 (70)(7)(66)578 — — (47) (47)
Consolidated1,470 59 (63)(126)1,340 — — 197  197 
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska561 687 580 475 2,303 416 372 448  1,236 
Lower 482,774 3,512 2,695 1,975 10,956 1,852 1,230 1,681  4,763 
Canada115 198 131 70 514 32 94  132 
Europe, Middle East and North Africa412 443 922 525 2,302 365 264 253  882 
Asia Pacific602 525 493 555 2,175 522 387 413  1,322 
Other International— — (3)(2)(4)(2) (5)
Corporate and Other(175)(279)(232)(222)(908)(242)(49)(286) (577)
Consolidated4,289 5,086 4,590 3,375 17,340 2,920 2,232 2,601  7,753 


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20222023
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska30.0 %30.1 %27.6 %27.1 %28.9 %26.7 %27.0 %26.1 % 26.6 %
Lower 4822.1 %19.6 %25.1 %22.1 %22.1 %22.1 %22.2 %22.3 % 22.2 %
Canada24.4 %25.1 %24.5 %24.0 %24.6 %21.9 %26.6 %24.5 % 24.9 %
Europe, Middle East and North Africa76.8 %71.1 %64.7 %70.3 %70.1 %70.6 %73.1 %71.7 % 71.7 %
Asia Pacific22.4 %17.7 %17.7 %13.6 %18.1 %10.3 %14.1 %19.1 % 14.3 %
Other International-137.8 %43.0 %16.8 %500.9 %168.2 %0.0 %0.0 %756.2 % -57.5 %
Corporate and Other38.1 %3.4 %21.9 %14.8 %19.6 %-11.3 %75.9 %-23.1 % 11.3 %
Consolidated36.8 %32.2 %38.7 %37.8 %36.2 %36.0 %33.6 %36.0 % 35.3 %


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20222023
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
$ Millions
DETAILED SPECIAL ITEMS
Alaska
Income tax provision (benefit)¹(23)— — (26)(49)— — —  — 
  Total23 — — 26 49 — — —  — 
Lower 48
Transaction and restructuring expenses(14)(14)— — (28)— — —  — 
Gain (loss) on asset sales— 101 (55)21 67 — — 94  94 
Subtotal before income taxes(14)87 (55)21 39 — — 94  94 
Income tax provision (benefit)²(30)18 (13)(20)— — (6) (6)
  Total16 69 (42)16 59 — — 100  100 
Canada
Exploration Expense— — — (129)(129)— — —  — 
Gain (loss) on asset sales229 153 (15)— 367 — — —  — 
Subtotal before income taxes229 153 (15)(129)238 — — —  — 
Income tax provision (benefit)³53 35 (3)(47)38 — — (92) (92)
  Total176 118 (12)(82)200 — — 92  92 
Europe, Middle East and North Africa
Income tax provision (benefit)⁴— 58 — — 58 — — —  — 
  Total— (58)— — (58)— — —  — 
Asia Pacific
Gain (loss) on asset sales534 — — — 534 — — —  — 
Pending claims and settlements— — 27 — 27 — — —  — 
Subtotal before income taxes534 — 27 — 561 — — —  — 
Income tax provision (benefit)⁷— — — — — — — (52) (52)
  Total534 — 27 — 561 — — 52  52 
Other International
Income tax provision (benefit)⁵— — 29 20 49 — — —  — 
  Total— — (29)(20)(49)— — —  — 
Corporate and Other
Pending claims and settlements— — (7)(87)(94)— — —  — 
Gain (loss) on investment in Cenovus Energy251 — — — 251 — — —  — 
Gain (loss) on CAD FX derivative— — — — — — — (59) (59)
Gain (loss) on AUD FX derivative(10)— — — (10)— — —  — 
Gain (loss) on debt extinguishment and exchange fees127 (83)— — 44 — — —  — 
Subtotal before income taxes368 (83)(7)(87)191 — — (59) (59)
Income tax provision (benefit)⁶(353)(13)— (21)(387)— — (12) (12)
  Total721 (70)(7)(66)578 — — (47) (47)
Total Company1,470 59 (63)(126)1,340 — — 197  197 
¹Includes a tax adjustment in Q1 2022 related to the closure of an audit; Q4 2022 tax adjustment in Alaska.
²Includes a tax adjustment in Q1 2022 related to the closure of an audit.
³Includes a tax adjustment in Q4 2022 related to pending claims and settlements and Q3 2023 related to the closure of an audit.
⁴Includes a tax adjustment in Q2 2022 related to Norway tax reform.
⁵Includes a tax adjustment in Q3 2022 and Q4 2022 related to pending claims and settlements.
⁶Includes a tax adjustment related Q1 2022 Indonesia disposition; Q1 2022 tax adjustments including the closure of an audit; Q4 2022 tax adjustment related to pending claims and settlements.
⁷Includes a tax adjustment in Q3 2023 related to Malaysia Deepwater tax incentive.


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20222023
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
$ Millions
CONSOLIDATED BALANCE SHEET
Assets
  Cash and cash equivalents6,414 6,909 8,010 6,458 6,458 6,974 5,735 8,830  8,830 
  Short-term investments730 1,272 2,412 2,785 2,785 1,635 1,080 616  616 
  Accounts and notes receivable7,807 8,081 7,338 7,075 7,075 5,280 4,517 5,658  5,658 
  Accounts and notes receivable—related parties72 72 16 13 13 16 14 13  13 
  Inventories1,174 1,234 1,226 1,219 1,219 1,258 1,236 1,326  1,326 
  Prepaid expenses and other current assets1,389 1,292 1,451 1,199 1,199 953 919 738  738 
       Total Current Assets17,586 18,860 20,453 18,749 18,749 16,116 13,501 17,181  17,181 
  Investments and long-term receivables8,309 8,203 8,204 8,225 8,225 8,197 8,618 8,731  8,731 
  Net properties, plants and equipment64,642 64,008 63,673 64,866 64,866 65,090 65,452 65,561  65,561 
  Other assets2,771 2,622 2,507 1,989 1,989 2,038 2,034 2,178  2,178 
Total Assets93,308 93,693 94,837 93,829 93,829 91,441 89,605 93,651  93,651 
Liabilities
  Accounts payable4,875 5,845 6,242 6,113 6,113 5,078 4,597 5,119  5,119 
  Accounts payable—related parties22 28 26 50 50 22 29 24  24 
  Short-term debt1,160 676 664 417 417 1,317 879 881  881 
  Accrued income and other taxes3,162 2,759 3,187 3,193 3,193 2,847 1,692 1,919  1,919 
  Employee benefit obligations446 529 628 728 728 420 552 691  691 
  Other accruals1,959 2,379 3,250 2,346 2,346 1,869 1,799 1,704  1,704 
       Total Current Liabilities11,624 12,216 13,997 12,847 12,847 11,553 9,548 10,338  10,338 
  Long-term debt17,586 16,295 16,297 16,226 16,226 15,266 15,565 18,182  18,182 
  Asset retirement obligations and accrued environmental costs5,815 5,737 5,729 6,401 6,401 6,324 6,357 6,425  6,425 
  Deferred income taxes6,556 6,694 7,218 7,726 7,726 7,927 8,038 8,325  8,325 
  Employee benefit obligations1,085 1,080 1,087 1,074 1,074 1,007 981 956  956 
  Other liabilities and deferred credits1,424 1,469 1,430 1,552 1,552 1,581 1,585 1,680  1,680 
Total Liabilities44,090 43,491 45,758 45,826 45,826 43,658 42,074 45,906  45,906 
Equity
  Common stock issued
    Par value21 21 21 21 21 21 21 21  21 
    Capital in excess of par60,907 61,045 61,089 61,142 61,142 61,100 61,169 61,262  61,262 
  Treasury stock(52,344)(54,644)(57,444)(60,189)(60,189)(61,904)(63,217)(64,529) (64,529)
  Accumulated other comprehensive loss(4,808)(5,313)(5,865)(6,000)(6,000)(6,027)(5,925)(5,961) (5,961)
  Retained earnings45,442 49,093 51,278 53,029 53,029 54,593 55,483 56,952  56,952 
Total Equity49,218 50,202 49,079 48,003 48,003 47,783 47,531 47,745  47,745 
Total Liabilities and Equity93,308 93,693 94,837 93,829 93,829 91,441 89,605 93,651  93,651 


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20222023
$ Millions1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
CASH FLOW INFORMATION
Cash Flows from Operating Activities
  Net income5,759 5,145 4,527 3,249 18,680 2,920 2,232 2,798  7,950 
  Depreciation, depletion and amortization1,823 1,810 1,872 1,999 7,504 1,942 2,010 2,095  6,047 
  Impairments(18)(12)— 11  12 
  Dry hole costs and leasehold impairments97 32 204 340 68 34 49  151 
  Accretion on discounted liabilities61 61 60 68 250 68 68 68  204 
  Deferred taxes373 495 726 492 2,086 324 165 264  753 
  Undistributed equity earnings220 371 (22)373 942 491 161 268  920 
  Gain (loss) on dispositions(817)(262)40 (38)(1,077)(93)(108) (200)
  Gain on investment in Cenovus Energy(251)— — — (251)— — —  — 
  Other(152)115 (1)124 86 (35)28 23  16 
  Net working capital changes(1,957)80 1,504 139 (234)(283)(845)(23) (1,151)
Net Cash Provided by Operating Activities5,068 7,914 8,740 6,592 28,314 5,403 3,854 5,445  14,702 
Cash Flows from Investing Activities
  Capital expenditures and investments(3,161)(1,968)(2,497)(2,533)(10,159)(2,897)(2,923)(2,545) (8,365)
  Working capital changes associated with investing activities363 133 46 (22)520 208 (122)(261) (175)
  Acquisition of businesses, net of cash acquired37 — — (97)(60)— — —  — 
  Proceeds from asset dispositions2,332 619 403 117 3,471 188 238 187  613 
  Net (purchases) sales of investments(263)(841)(1,131)(394)(2,629)1,065 484 311  1,860 
  Collection of advances/loans—related parties55 — 59 — 114 — — —  — 
  Other26 (34)15 (5)(12)(76) (81)
Net Cash Used in Investing Activities(611)(2,091)(3,105)(2,934)(8,741)(1,448)(2,316)(2,384) (6,148)
Cash Flows from Financing Activities
  Net issuance (repayment) of debt(1,067)(1,865)(45)(393)(3,370)(43)(64)2,651  2,544 
  Issuance of company common stock271 79 (5)17 362 (97)38  (57)
  Repurchase of company common stock(1,425)(2,300)(2,799)(2,746)(9,270)(1,700)(1,300)(1,300) (4,300)
  Dividends paid(864)(988)(1,484)(2,390)(5,726)(1,488)(1,350)(1,337) (4,175)
  Other(52)(4)(49)(13)(23) (34)
Net Cash Used in Financing Activities(3,137)(5,078)(4,330)(5,508)(18,053)(3,326)(2,725)29  (6,022)
Effect of Exchange Rate Changes21 (258)(215)228 (224)(104)(58)12  (150)
Net Change in Cash, Cash Equivalents and Restricted Cash1,341 487 1,090 (1,622)1,296 525 (1,245)3,102  2,382 
Cash, cash equivalents and restricted cash at beginning of period5,398 6,739 7,226 8,316 5,398 6,694 7,219 5,974  6,694 
Cash, Cash Equivalents and Restricted Cash at End of Period6,739 7,226 8,316 6,694 6,694 7,219 5,974 9,076  9,076 
CAPITAL EXPENDITURES AND INVESTMENTS
 Alaska253 218 269 351 1,091 406 363 371  1,140 
 Lower 481,062 1,285 1,773 1,510 5,630 1,704 1,653 1,521  4,878 
 Canada122 125 135 148 530 136 92 117  345 
 Europe, Middle East and North Africa172 192 167 467 998 209 358 267  834 
 Asia Pacific1,538 126 127 89 1,880 63 79 103  245 
 Other International— — — — — — — —  — 
 Corporate and Other14 22 26 (32)30 379 378 166  923 
Total Capital Expenditures and Investments3,161 1,968 2,497 2,533 10,159 2,897 2,923 2,545  8,365 


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20222023
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
TOTAL SEGMENTS
Production
Total (MBOED)1,747 1,692 1,754 1,758 1,738 1,792 1,805 1,806  1,801 
Crude Oil (MBD)
  Consolidated operations903 857 882 899 885 926 918 914  919 
  Equity affiliates12 14 13 13 13 11 13 13  13 
  Total915 871 895 912 898 937 931 927  932 
Over (under) lifting of crude oil (MBD)28 27 17 (4)33 24  18 
NGL (MBD)
  Consolidated operations216 236 263 261 244 264 275 283  274 
  Equity affiliates 
  Total223 244 271 269 252 271 283 291  282 
Bitumen (MBD)
  Consolidated operations67 59 69 69 66 69 66 64  66 
  Total67 59 69 69 66 69 66 64  66 
Natural Gas (MMCFD)
  Consolidated operations2,126 1,872 1,899 1,862 1,939 1,922 1,896 1,889  1,903 
  Equity affiliates1,127 1,235 1,214 1,184 1,191 1,166 1,251 1,252  1,223 
  Total3,253 3,107 3,113 3,046 3,130 3,088 3,147 3,141  3,126