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IE 618: Engineering Cost and Production Economics

Instructor: Randy Reagan Date: February 18, 2009

Performed by: Mariam Israiel

ConocoPhillips Company is an international energyenergy corporation. It was created through the merger of Conoco Inc.Conoco Inc. and the PhillipsPhillips Petrol. Comp. on August 30, 2002August 30, 2002. Headquarters are based in Houston, TexasHouston, Texas in the US, and offices are located and serve worldwide. It operates in six segmentssix segments Exploration and Production (E&P), Midstream, Refining and Marketing (R&M), LUKOIL Investment, Chemicals, & Emerging Businesses. ConocoPhillips operates responsibly in nearly

40 countries40 countries throughout the world, providing reliable and sustainable energy supply. It is the fifth largest privateprivate sector energy corporation in the world and is one of the six "supermajor" vertically integrated oil companies. Company’s Main ProductsCompany’s Main Products: Oil, Natural Gas, Petroleum, Lubricant, and Petrochemical

Top ExecutivesTop Executives: James J. Mulva (CEO) &

(Chairman) Sigmund L. Cornelius (VP) & (CFO)

Total Number of EmployeesTotal Number of Employees: 32,600 (2008)

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Key Capabilities and Recourses:Key Capabilities and Recourses: the company is investing in several emerging businesses power generation; Carbon-to-liquidsCarbon-to-liquids; technology solutionstechnology solutions; and emerging technologies such as renewable fuelsrenewable fuels and alternative alternative energyenergy sources that provide current and potential future growth opportunities.

Scope of Products and Services:Scope of Products and Services: Exploration and Production (E&P) segment produces and markets crude oil, crude oil, natural gas, and natural gas liquidsnatural gas, and natural gas liquids.

Key Cost Issues:Key Cost Issues: ConocoPhillips pipe line (CPPL) operates more than 11,000 miles of pipelines and more than 60 storage terminals in the US. CPPL transports both rawraw and finished petroleum productsfinished petroleum products, including crude oil, propane and refined productsrefined products such as gasoline, diesel and jet fuel.

Competitors:Competitors: BP plc, Shell, Hess, Lukoil, Chevron, Exxon Mobil.

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Market CapMarket Cap US$ 138.19 B (2008) RevenueRevenue US$ 188.52 B (2007) Operating IncomeOperating Income US$ 23.272 B (2007)

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Net IncomeNet Income US$ 11.891 B (2007) Total AssetsTotal Assets US$ 177.757 B (2007) Total EquityTotal Equity US$ 88.983 B (2007)

Stock Stock TrendTrend

Financial Summary & Financial Summary & HighlightsHighlights

ConocoPhillips Reports Fourth-Quarter Net Loss of $31.8 Billion ($21.37 per share)

Fourth-quarter 2008 adjusted earnings were $1,914 million or $1.28 per share. This compares with fourth-quarter 2007 adjusted earnings of $4,108 million, or $2.55 per share.

Fourth-quarter financial results: The Exploration and Production (E&P) segment reported a fourth-quarter net loss of $24,293 million, compared with net income of $3,928 million in the previous quarter (3rdQ) and $2,608 million in the (4thQ) of 2007.

As of 02-13-2009: ConocoPhillips [NYSE:COP] announced a quarterly dividend of 47 cents per share.

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Detailed Financial Detailed Financial SummarySummary

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Financial Summary Financial Summary Continuous: Continuous: