ConocoPhillips Reports 3Q Results
ConocoPhillips has reported third-quarter net operating income of $456 million, or 94 cents per share, compared with $373 million, or $1.33 per share, for the same period a year ago. Including special items of $572 million, the company had a loss of $116 million, or 24 cents per share, compared with net income of $364 million, or $1.30 per share, for the same period a year ago. Total revenues were $15.7 billion, versus $6 billion a year ago.
"We are extremely pleased with the progress we've made thus far in integrating the operations of Conoco and Phillips," said Jim Mulva, president and chief executive officer. "We continue to work toward finalizing our operating plans and synergy targets, which we look forward to sharing with the investment community on November 22.
"On the whole, the new company has performed well, especially in the areas of safety and operational consistency. Upstream, we benefited from improved crude oil prices, but at the same time, we have seen difficult market conditions in our downstream businesses."
The ConocoPhillips merger was finalized August 30 and utilized purchase accounting, which reflects the fair value of the Conoco assets and liabilities. Consequently, the results for the third quarter of 2002 include two months' activity for Phillips and one month's activity for ConocoPhillips. Similarly, results for the first nine months of 2002 include eight months' activity for Phillips and one month of activity for ConocoPhillips. Prior periods reflect only Phillips' results, which have been restated for discontinued operations as a result of dispositions required by the Federal Trade Commission (FTC). In order to provide meaningful prior-period comparisons, the company has included pro forma operating information for its upstream and downstream operations. This pro forma information was prepared by combining the historical statistical information of Conoco and Phillips for all reporting periods presented.
In addition to these special items, the company experienced an $8 million loss in the third quarter of 2002 from the oil and gas hedging program related to Conoco's July 2001 Gulf Canada acquisition, as well as $2 million in foreign currency exchange gains.
For the first nine months of 2002, net operating income (which excludes special items) was $820 million, or $1.94 per share, versus $1.5 billion, or $5.56 per share, for 2001. Net income was $133 million, or 32 cents per share, compared with $1.5 billion, or $5.66 per share, for the same period a year ago. Total revenues were $36.5 billion, versus $16.6 billion a year ago.
Through the first nine months, the company's cash flows from operating activities were $2.9 billion, compared with $3.3 billion for the same period of 2001. Capital spending was $2.3 billion, versus $2.1 billion a year ago.