ConocoPhillips Posts Q1 2009 Interim Update

ConocoPhillips' selected highlights for the first quarter of 2009 compared to the fourth quarter of 2008 include:

Exploration and Production

  • Higher worldwide production.
  • Lower crude oil prices.
  • Lower natural gas prices.

Corporate and Other

  • Corporate expenses expected to be lower.
  • Effective tax rate anticipated to be 65 percent to 70 percent.

Exploration and Production (E&P)

Total first-quarter production on a barrel-of-oil equivalent (BOE) per day basis, including Syncrude and excluding LUKOIL, is anticipated to be approximately 30,000 BOE per day higher than the previous quarter.

In addition, E&P results are anticipated to be impacted by losses in the U.S. Lower 48 and Canada mainly due to lower realized natural gas prices. Exploration expenses are expected to be approximately $275 million before-tax for the quarter.

Corporate and Other

At the end of the first quarter, ConocoPhillips' debt balance is expected to be approximately $29.4 billion, $1.9 billion higher than the previous quarter, due in part to an overall increase in working capital. The effective tax rate is anticipated to be 65 percent to 70 percent, reflecting a larger contribution in earnings during the quarter from higher tax rate jurisdictions. The number of weighted-average diluted shares outstanding during the first quarter is expected to be approximately 1,495 million.