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Conocophillips (COP) SEC Filing 10-K Annual Report for the fiscal year ending Friday, December 31, 2021

Conocophillips

CIK: 1163165 Ticker: COP
 
 Exhibit 99.1


ConocoPhillips Reports Fourth-Quarter and Full-Year 2021 Results; Increases Planned 2022 Return of Capital to $8 Billion and Declares Quarterly Dividend and Variable Return of Cash Distribution

HOUSTON--(BUSINESS WIRE)--February 3, 2022--ConocoPhillips (NYSE: COP) today reported fourth-quarter 2021 earnings of $2.6 billion, or $1.98 per share, compared with a fourth-quarter 2020 loss of $0.8 billion, or ($0.72) per share. Excluding special items, fourth-quarter 2021 adjusted earnings were $3.0 billion, or $2.27 per share, compared with a fourth-quarter 2020 adjusted loss of $0.2 billion, or ($0.19) per share. Special items for the current quarter were primarily comprised of non-cash impairments related to the company’s existing investment in APLNG and noncore assets in Lower 48, partially offset by a gain on Cenovus Energy (CVE) equity.

Full-year 2021 earnings were $8.1 billion, or $6.07 per share, compared with a full-year 2020 loss of $2.7 billion, or ($2.51) per share. Excluding special items, full-year 2021 adjusted earnings were $8.0 billion, or $6.01 per share, compared with a full-year 2020 adjusted loss of $1.0 billion, or ($0.97) per share.

In addition, ConocoPhillips today announced a $1 billion increase in expected 2022 return of capital to shareholders to a new total of $8 billion, an increase of more than 30% over 2021. The company declared both an ordinary dividend of 46 cents per share and a second-quarter variable return of cash (VROC) payment of 30 cents per share, a 50% increase over the first-quarter VROC. Combined, the targeted 2022 ordinary dividend and VROC represent a more than 50% increase in cash return to shareholders compared to 2021.

“Our strong fourth-quarter results capped a transformative year for our company as we continue to deliver on our Triple Mandate,” said Ryan Lance, ConocoPhillips chairman and chief executive officer. “During 2021, we strengthened our outstanding low cost of supply portfolio. We closed and successfully integrated the Concho acquisition while exceeding our synergy targets, acquired and began to integrate the accretive Shell Permian position into our portfolio, and announced both the sale of our Indonesia assets and acquisition of additional interest in APLNG. We generated a 14% return on capital employed and returned $6 billion, or 38% of our cash from operations, to shareholders through ordinary dividends and share repurchases, and today announced an expected $8 billion total return of capital to shareholders in 2022. We continued to advance our commitment to ESG excellence, announcing plans to further reduce both our net and gross emissions intensity by 2030. It has been a remarkable year for the company, and I could not be more proud of our employees.”

Full-Year 2021 Summary and Recent Announcements

  • Announced an increase to expected 2022 return of capital to shareholders to a total of $8 billion, with the incremental $1 billion to be distributed through share repurchases and VROC tiers.
  • Acquired and integrated Concho, capturing over $1 billion of savings ahead of schedule; acquired Shell’s Permian assets on Dec. 1, 2021.
  • Exercised preemption right to purchase additional 10% shareholding interest in APLNG, expected to close in the first quarter of 2022.
  • Generated $0.3 billion in disposition proceeds from noncore asset sales and entered into agreements to sell an additional $1.8 billion in assets, subject to customary closing adjustments.
  • Delivered strong operational performance across the company’s asset base, resulting in full-year production of 1,527 MBOED, excluding Libya.
  • Achieved first production from GMT2, Malikai Phase 2 and SNP Phase 2; completed Tor II project and started production from a third Montney multi-well pad.
  • Generated cash provided by operating activities of $17.0 billion and cash from operations (CFO) of $15.7 billion, exceeding capital expenditures and investments of $5.3 billion, yielding free cash flow of $10.4 billion.
  • Achieved 14% return on capital employed; 16% cash-adjusted return on capital employed.
  • Distributed $6.0 billion to shareholders through $2.4 billion in dividends and $3.6 billion of share repurchases, representing a 38% return of CFO.
  • Ended the year with cash, cash equivalents and restricted cash totaling $5.4 billion and short-term investments of $0.4 billion, totaling $5.8 billion in ending cash and short-term investments.
  • Initiated paced monetization of the company’s CVE investment, generating $1.1 billion in proceeds through sale of 117 million shares, with the funds applied to share repurchases; 91 million CVE shares remained outstanding at year-end 2021.
  • Advanced the company’s net-zero ambition with an increase in Scope 1 and 2 greenhouse gas emissions-intensity reduction targets to 40-50% from a 2016 baseline on a net equity and gross operated basis by 2030, from the previous target of 35-45% on only a gross operated basis.

The following information was filed by Conocophillips (COP) on Thursday, February 3, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Cover
Consolidated Balance Sheet
Consolidated Balance Sheet (Parenthetical)
Consolidated Income Statement
Consolidated Statement Of Cash Flows
Consolidated Statement Of Cash Flows (Parenthetical)
Consolidated Statement Of Changes In Equity
Consolidated Statement Of Changes In Equity (Parenthetical)
Consolidated Statement Of Comprehensive Income
Accounting Policies
Accounting Policies (Narrative) (Details)
Accounting Policies (Policy)
Accumulated Other Comprehensive Income (Loss) (Items Reclassified Out Of Accumulated Other Comprehensive Income (Loss)) (Details)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss (Components Of Accumulated Other Comprehensive Loss In The Equity Section Of The Balance Sheet) (Details)
Accumulated Other Comprehensive Loss (Narrative) (Details)
Accumulated Other Comprehensive Loss (Tables)
Asset Acquisitions And Dispositions (Narrative - Acquisition Of Concho Resources Inc.) (Details)
Asset Acquisitions And Dispositions (Narrative - Acquisition Of Shell Permian Assets) (Details)
Asset Acquisitions And Dispositions (Narrative - Announced Acquisitions) (Details)
Asset Acquisitions And Dispositions (Narrative - Asset Acquisition) (Details)
Asset Acquisitions And Dispositions (Narrative - Assets Sold) (Details)
Asset Acquisitions And Dispositions (Narrative - Planned Disposition) (Details)
Asset Acquisitions And Dispositions (Net Assets Acquired) (Details)
Asset Acquisitions And Dispositions (Non-Recurring Restructuring And Transition-Related Costs) (Details)
Asset Acquisitions And Dispositions (Supplemental Pro Forma Financial Information) (Details)
Asset Acquisitions And Dispositions (Tables)
Asset Acquisitions And Dispositions (Total Consideration) (Details)
Asset Retirement Obligations And Accrued Environmental Costs
Asset Retirement Obligations And Accrued Environmental Costs (Asset Retirement Obligations And Accrued Environmental Costs) (Details)
Asset Retirement Obligations And Accrued Environmental Costs (Changes In Asset Retirement Obligation) (Details)
Asset Retirement Obligations And Accrued Environmental Costs (Narrative) (Details)
Asset Retirement Obligations And Accrued Environmental Costs (Tables)
Assets Acquisitions And Dispositions
Cash Flow Information
Cash Flow Information (Details)
Cash Flow Information (Tables)
Contingencies And Commitments
Contingencies And Commitments (Narrative) (Details)
Debt
Debt (Narrative) (Details)
Debt (Schedule Of Debt - 1) (Details)
Debt (Schedule Of Debt - 2) (Details)
Debt (Tables)
Derivative And Financial Instruments
Derivative And Financial Instruments (Commodity - Balance Sheet Location - Fair Value Amounts Of Derivatives) (Details)
Derivative And Financial Instruments (Commodity - Income Statement Location - Gain (Loss) Amounts Of Derivatives) (Details)
Derivative And Financial Instruments (Commodity - Net Exposures From Outstanding Derivative Contracts) (Details)
Derivative And Financial Instruments (Financial Instruments - Amortized Cost Basis And Fair Value Of Investments In Debt Securities Classified As Available For Sale) (Details)
Derivative And Financial Instruments (Financial Instruments - Debt Securities Carried At Fair Value) (Details)
Derivative And Financial Instruments (Financial Instruments - Net Carrying Amount Of Held To Maturity Investments) (Details)
Derivative And Financial Instruments (Foreign Currency Exchange - Balance Sheet Location And Fair Value Amounts Of Derivatives) (Details)
Derivative And Financial Instruments (Foreign Currency Exchange - Income Statement Location And Gain (Loss) Amounts Of Derivatives) (Details)
Derivative And Financial Instruments (Foreign Currency Exchange - Net Exposures From Outstanding Derivative Contracts) (Details)
Derivative And Financial Instruments (Narrative - Commodity) (Details)
Derivative And Financial Instruments (Narrative - Credit Risk) (Details)
Derivative And Financial Instruments (Narrative - Financial Instruments) (Details)
Derivative And Financial Instruments (Narrative - Foreign Currency Exchange) (Details)
Derivative And Financial Instruments (Tables)
Employee Benefit Plans
Employee Benefit Plans (Amounts Recognized In Balance Sheet And Assumptions) (Details)
Employee Benefit Plans (Before-Tax Amounts Not Recognized In Net Periodic Benefit Cost And Sources Of Change In Other Comprehensive Income (Loss)) (Details)
Employee Benefit Plans (Benefit Payments) (Details)
Employee Benefit Plans (Change In Benefit Obligations And Fair Value Of Plan Assets) (Details)
Employee Benefit Plans (Change In Benefit Obligations) (Parenthetical) (Details)
Employee Benefit Plans (Compensation Expense) (Details)
Employee Benefit Plans (Components Of Net Periodic Benefit Cost) (Details)
Employee Benefit Plans (Fair Values Of Pension Plan Assets And Textuals) (Details)
Employee Benefit Plans (Narrative) (Details)
Employee Benefit Plans (Narrative-Health Care Trends) (Details)
Employee Benefit Plans (Projected And Accumulated Benefit Obligations In Excess Of Fair Value) (Details)
Employee Benefit Plans (Restricted Stock Unit And Performance Share Program Activity) (Details)
Employee Benefit Plans (Severance Accrual) (Details)
Employee Benefit Plans (Stock Option Activity) (Details)
Employee Benefit Plans (Tables)
Equity
Equity (Changes In Shares Of Common Stock) (Details)
Equity (Narrative) (Details)
Equity (Tables)
Fair Value Measurement
Fair Value Measurement (Commodity Derivative Balances Subject To Right Of Setoff) (Details)
Fair Value Measurement (Fair Value Hierarchy For Gross Financial Assets And Liabilities) (Details)
Fair Value Measurement (Narrative) (Details)
Fair Value Measurement (Net Fair Value Of Financial Instruments) (Details)
Fair Value Measurement (Range And Arithmetic Average Of Significant Unobservable Inputs) (Details)
Fair Value Measurement (Tables)
Fair Value Measurement (Values Of Assets, By Major Category, Measured At Fair Value On A Nonrecurring Basis) (Details)
Guarantees
Guarantees (Narrative) (Details)
Impairments
Impairments (Before Tax Impairment Charges) (Details)
Impairments (Narrative) (Details)
Impairments (Tables)
Income Taxes
Income Taxes (Components Of Deferred Tax Liabilties And Assets) (Details)
Income Taxes (Components Of Provision) (Details)
Income Taxes (Narrative) (Details)
Income Taxes (Reconciliation Of Deferred Tax Asset Valuation Allowance) (Details)
Income Taxes (Tables)
Income Taxes (U.S. And Foreign Income (Loss) From Continuing Operations Before Income Taxes) (Details)
Income Taxes (Unrecognized Tax Benefits) (Details)
Inventories
Inventories (Schedule Of Inventories) (Details)
Inventories (Tables)
Investment In Cenovus Energy
Investment In Cenovus Energy (Gains And Losses Recorded In Other Income (Loss)) (Details)
Investment In Cenovus Energy (Narrative) (Details)
Investment In Cenovus Energy (Schedule Of Investment In Common Shares Carried At Fair Value) (Details)
Investment In Cenovus Energy (Tables)
Investments, Loans And Long-Term Receivables
Investments, Loans And Long-Term Receivables (Components Of Investments, Loans And Long-Term Receivables) (Details)
Investments, Loans And Long-Term Receivables (Narrative) (Details)
Investments, Loans And Long-Term Receivables (Summarized Financial Information For Equity Method Investments In Affiliated Companies) (Details)
Investments, Loans And Long-Term Receivables (Tables)
Non-Mineral Lease (Tables)
Non-Mineral Leases
Non-Mineral Leases (Lease Cost) (Details)
Non-Mineral Leases (Lease Term And Discount Rate) (Details)
Non-Mineral Leases (Maturity Of Lease Liabilities - Alternate Calculation) (Details)
Non-Mineral Leases (Maturity Of Lease Liabilities) (Details)
Non-Mineral Leases (Other Information) (Details)
Non-Mineral Leases (Right-Of-Use Assets And Lease Liabilities) (Details)
Other Financial Information
Other Financial Information (Other Financial Information) (Details)
Other Financial Information (Property Plant And Equipment) (Details)
Other Financial Information (Tables)
Related Party Transactions
Related Party Transactions (Details)
Related Party Transactions (Tables)
Sales And Other Operating Revenues
Sales And Other Operating Revenues (Practical Expedients) (Details)
Sales And Other Operating Revenues (Receivables And Contract Liabilities) (Details)
Sales And Other Operating Revenues (Revenue From Contracts With Customers) (Details)
Sales And Other Operating Revenues (Tables)
Segment Disclosures And Related Information
Segment Disclosures And Related Information (Capital Expenditures And Investments And Interest Income And Expense) (Details)
Segment Disclosures And Related Information (Depreciation, Depletion, Amortization And Impairments, Equity In Earnings Of Affiliates And Income Tax Provision (Benefit)) (Details)
Segment Disclosures And Related Information (Geographic Information) (Details)
Segment Disclosures And Related Information (Narrative) (Details)
Segment Disclosures And Related Information (Net Income (Loss) Attributable To Conocophillips, Investments In And Advances To Affiliates And Total Assets) (Details)
Segment Disclosures And Related Information (Sales And Other Operating Revenues By Product) (Details)
Segment Disclosures And Related Information (Sales And Other Operating Revenues) (Details)
Segment Disclosures And Related Information (Tables)
Suspended Wells And Exploration Expenses
Suspended Wells And Exploration Expenses (Aging Of Exploratory Well Cost, Capitalized For More Than One Year) (Details)
Suspended Wells And Exploration Expenses (Aging Of Suspended Well Cost) (Details)
Suspended Wells And Exploration Expenses (Narrative) (Details)
Suspended Wells And Exploration Expenses (Net Changes In Suspended Exploratory Well Costs) (Details)
Suspended Wells And Exploration Expenses (Tables)
Ticker: COP
CIK: 1163165
Form Type: 10-K Annual Report
Accession Number: 0001562762-22-000031
Submitted to the SEC: Thu Feb 17 2022 1:20:14 PM EST
Accepted by the SEC: Thu Feb 17 2022
Period: Friday, December 31, 2021
Industry: Petroleum Refining

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