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4e24ae44425f93f6890af3df027e1b9ca574f109173f784ad19267cb3261e0e4

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

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Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

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Sales and other operating revenues (USD, millions)

Equity in earnings of affiliates (USD, millions)

Gain (loss) on dispositions (USD, millions)

Other income (USD, millions)

Total Revenues and Other Income (USD, millions)

Purchased commodities (USD, millions)

Production and operating expenses (USD, millions)

Selling, general and administrative expenses (USD, millions)

Exploration expenses (USD, millions)

Depreciation, depletion and amortization (USD, millions)

Impairments (USD, millions)

Taxes other than income taxes (USD, millions)

Accretion on discounted liabilities (USD, millions)

Interest and debt expense (USD, millions)

Foreign currency transaction (gain) loss (USD, millions)

Other expenses (USD, millions)

Total Costs and Expenses (USD, millions)

Income (loss) before income taxes (USD, millions)

Income tax provision (benefit) (USD, millions)

Net Income (Loss) (USD, millions)

Basic Net Income (Loss) Per Share (USD)

Diluted Net Income (Loss) Per Share (USD)

20b77dbae4e88a59121218ed5d50dc33d4c93770cdef3b64ad9bf3ba02b283fd

Cash and cash equivalents (Millions of Dollars)

Short-term investments (Millions of Dollars)

Accounts and notes receivable (net) (Millions of Dollars)

Inventories (Millions of Dollars)

Prepaid expenses and other current assets (Millions of Dollars)

Total Current Assets (Millions of Dollars)

Investments and long-term receivables (Millions of Dollars)

Net properties, plants and equipment (Millions of Dollars)

Other assets (Millions of Dollars)

Total Assets (Millions of Dollars)

Accounts payable (Millions of Dollars)

Short-term debt (Millions of Dollars)

Accrued income and other taxes (Millions of Dollars)

Employee benefit obligations (current) (Millions of Dollars)

Other accruals (Millions of Dollars)

Total Current Liabilities (Millions of Dollars)

Long-term debt (Millions of Dollars)

Asset retirement obligations and accrued environmental costs (Millions of Dollars)

Deferred income taxes (Millions of Dollars)

Employee benefit obligations (non-current) (Millions of Dollars)

Other liabilities and deferred credits (Millions of Dollars)

Total Liabilities (Millions of Dollars)

Common stock, Par value (Millions of Dollars)

Capital in excess of par (Millions of Dollars)

Treasury stock (at cost) (Millions of Dollars)

Accumulated other comprehensive income (loss) (Millions of Dollars)

Retained earnings (Millions of Dollars)

Total Equity (Millions of Dollars)

Total Liabilities and Equity (Millions of Dollars)

a89060deb1d34dc94a31323e7765cd7fb386bf4868f367549db307ac73475174

The significant drop in cash and cash equivalents in Q2 2024 was driven by a combination of factors. Specifically, **capital expenditures and investments** of **$5.9 billion**, **stock repurchases** worth **$2.3 billion**, **dividend payments** of **$1.8 billion** (including variable return of cash), **debt retirement** of **$0.6 billion**, and **net purchases of investments** costing **$0.8 billion** collectively contributed to reducing the cash balance from **$5,574 million** as of March 31, 2024, to **$4,294 million** as of June 30, 2024.  **[0001163165-24-000037_cop-20240630.htm:4]** **[0001163165-24-000037_cop-20240630.htm:43]** **[0001163165-24-000034_cop-20240801x8kexx992.htm:5]** 

Why did Cash and cash equivalents drop sharply in Q2 2024?

During Q1 2024, **short-term investments** are unusually low because ConocoPhillips used available cash for several key financial activities. The decline from **$971 million** at the end of December 2023 to **$487 million** by March 2024 reflects the company's allocation of cash toward supporting **capital expenditures**, repurchasing **common stock**, paying **dividends**, and retiring **debt**.  **[0001163165-24-000023_cop-20240331.htm:35]** **[0001163165-24-000023_cop-20240331.htm:3]** 

Why are Short-term investments unusually low in Q1 2024?

The documents indicate that the **Accounts payable—related parties** increased sharply from **$37 million in Q1 2024** to **$91 million in Q2 2024**; however, they do not provide specific reasons for this sudden jump.   

What drove the sudden increase in Accounts payable—related parties in Q2 2024?

The **long-term debt** declined in Q3 2024 primarily because ConocoPhillips retired **$461 million principal amount** of its **2.125% Notes** as they matured in the first quarter of 2024.  **[0001163165-24-000052_cop-20240930.htm:9]**  This reduction in debt led to the decrease in the reported figures from **$17,863 million** at the end of Q4 2023 to **$16,990 million** by the end of Q3 2024.  **[0001163165-24-000052_cop-20240930.htm:4]** 

Why did Long-term debt decline in Q3 2024?

90994387ccfc9b0fd19095b3d531ac1e96f6df984f23e29c4e4def7dbd43aa5e

The **dramatic drop** in deferred taxes in Q3 2024 was mainly due to a **tax deferral opportunity** provided by the IRS that allowed the company to push its second-quarter and remaining tax payments for the year into 2025. This adjustment, coupled with the impact of the **Marathon Oil acquisition**—which introduced net operating losses and other tax attributes—and normal movements in accounts receivable and payable, led to significant changes in the deferred tax balances.  **[COP_3405134_13]** **[0001163165-25-000012_cop-20241231.htm:145]** 

Why did Deferred taxes drop so dramatically in Q3 2024?

In Q4 2023, ConocoPhillips saw a steep increase in investing cash outflows primarily due to **significantly higher capital expenditures and investments of $(2,883) million** and **increased cash outflows from the acquisition of businesses totaling $(2,724) million**. Additionally, **net sales (purchases) of investments contributed an extra $(487) million** to the overall cash used in investing activities.  **[0001163165-24-000018_cop-20240502x8kexx992.htm:5]** **[0001163165-24-000004_cop-20240208x8kexx992.htm:7]** **[0001163165-24-000018_cop-20240502x8kexx992.htm:5]** 

What drove the steep increase in cash outflows for investing in Q4 2023?

The available documents provide detailed reasons for the changes in Q2 2024 compared to Q2 2023 but do not offer an explicit explanation for why the operating cash flow in Q2 2024 (**$4,919 million**  **[0001163165-24-000037_cop-20240630.htm:5]** ) is much lower than peak periods such as Q3 2022 (**$8,740 million**  **[0001163165-22-000017_cop-20220930.htm:4]** ). While factors like higher net income, increased DD&A, and improved working capital adjustments boosted Q2 2024’s operating cash flow compared to Q2 2023  **[0001163165-24-000034_cop-20240801x8kexx991.htm:7]** **[0001163165-24-000037_cop-20240630.htm:44]** **[0001163165-24-000034_cop-20240801x8kexx991.htm:0]** , the documents do not specifically address what drove the operating cash flow to a peak of **$8,740 million** in earlier periods or why Q2 2024 is significantly lower relative to those peaks.

Why is Operating Cash Flow much lower in Q2 2024 compared to previous peak periods?

a157fc016968e7e4bf4013fed11c2f95c0bd064ef015d93e8cc6396710a67416

In Q1 2024, the net foreign currency outcome flipped because **foreign currency transaction gains decreased significantly**. Specifically, the gains dropped from **$44 million in Q1 2023 to $18 million in Q1 2024**, largely due to **lower foreign exchange gains of approximately $19 million**, which were driven by the **strengthening of the USD and EUR against the NOK** in the Europe, Middle East, and North Africa segment.  **[0001163165-24-000023_cop-20240331.htm:2]** **[0001163165-24-000023_cop-20240331.htm:34]** 

Why did the net foreign currency outcome flip in Q1 2024?

The drop in net income in Q3 2024 was primarily driven by **lower realized prices**—the average price fell by **10%** compared to Q3 2023—and several **segment-specific factors**. In the Lower 48 segment, there was a significant reduction due to **lower revenues** (a **$494 million** impact), **higher DD&A expenses** (an increase of **$118 million**), and the **absence of a $100 million gain** from a prior equity investment divestiture. Additionally, the Asia Pacific segment experienced a slight decrease due to **lower realized prices ($41 million)** and **lower volumes ($38 million)**. Furthermore, **higher operating expenses** and the **loss of a $52 million tax incentive** (resulting in a higher effective tax rate of **36.4%** compared to **31.8%** in the prior year) also contributed to the overall decline in net income.  **[0001163165-24-000049_cop-20241031x8kexx991.htm:0]** **[0001163165-24-000052_cop-20240930.htm:39]** **[0001163165-24-000052_cop-20240930.htm:42]** **[0001163165-24-000052_cop-20240930.htm:29]** 

What contributed to the drop in net income in Q3 2024?

EPS in Q3 2024 fell sharply because the company experienced a combination of **lower realized prices** (a **10% decrease** from **$60.05** per BOE to **$54.18** per BOE), a significant reduction in **sales and operating revenues** (a decrease of **$1,209 million** compared to the prior year), and **increased costs**. These higher costs included a **$266 million** increase in production and operating expenses as well as an additional **$295 million** in depreciation, depletion and amortization expenses, all of which contributed to a lower basic net income per share, thereby reducing EPS.  **[0001163165-24-000052_cop-20240930.htm:27]** **[0001163165-24-000049_cop-20241031x8kexx991.htm:0]** **[0001163165-24-000052_cop-20240930.htm:37]** 

Why did EPS fall so sharply in Q3 2024?

The dramatic shift in disposition gains in Q3 2024 was driven primarily by the absence of the divestiture of an equity investment in the company's Lower 48 segment, which had significantly contributed to the high gains seen in Q3 2023.  **[0001163165-24-000052_cop-20240930.htm:37]** 

What drove the dramatic shift in disposition gains in Q3 2024?

The documents indicate that **accretion on discounted liabilities** in **Q3 2024** was **$80 million**, which is consistent with **$80 million** in both **Q1** and **Q2 2024**. Consequently, there was no increase in accretion that would necessitate an explanation for Q3 2024 specifically.  **[0001163165-24-000049_cop-20241031x8kexx992.htm:6]** **[0001163165-25-000006_cop-20250206x8kexx992.htm:6]** 

What factors led to the increase in accretion on discounted liabilities in Q3 2024?

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Net income (loss) [Millions of Dollars]

Depreciation, depletion and amortization [Millions of Dollars]

Impairments [Millions of Dollars]

Dry hole costs and leasehold impairments [Millions of Dollars]

Accretion on discounted liabilities [Millions of Dollars]

Distributions more (less) than income from equity affiliates [Millions of Dollars]

(Gain) loss on dispositions [Millions of Dollars]

Other [Millions of Dollars]

Net Cash Provided by Operating Activities [Millions of Dollars]

Capital expenditures and investments [Millions of Dollars]

Working capital changes associated with investing activities [Millions of Dollars]

Acquisition of businesses, net of cash acquired [Millions of Dollars]

Proceeds from asset dispositions [Millions of Dollars]

Net sales (purchases) of investments [Millions of Dollars]

Other [Investing Activities] [Millions of Dollars]

Net Cash Used in Investing Activities [Millions of Dollars]

Issuance of company common stock [Millions of Dollars]

Repurchase of company common stock [Millions of Dollars]

Dividends paid [Millions of Dollars]

Other [Financing Activities] [Millions of Dollars]

Net Cash Used in Financing Activities [Millions of Dollars]

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash [Millions of Dollars]

Net Change in Cash, Cash Equivalents and Restricted Cash [Millions of Dollars]

Deferred taxes [Millions of Dollars]

Cash, cash equivalents and restricted cash at beginning of period [Millions of Dollars]

Cash, Cash Equivalents and Restricted Cash at End of Period [Millions of Dollars]

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e670003b4730d339e693e29bbfe5451dfa14e62674ed04838985892c705505df

ConocoPhillips (COP)

Financials