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ConocoPhillips Annual Report, Year Ended Dec 31, 2006

Filing Date
Filed February 23, 2007
Period End
December 31, 2006
Security
COP
In the record · 2016–202610-K1110-Q338-K108

COP filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 108 current reports (8-K) between 2016 and 2026.

  1. Impairment8-K · Jun ’17Jun ’17
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Deal closed8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 10-K filed February 23, 2007. Cited figures are marked; the original filing is the authoritative source.

This 10-K filing for ConocoPhillips for the fiscal year ending December 30, 2006, highlights a period of significant growth and strategic moves.

The company completed the substantial $33.9 billiona acquisition of Burlington Resources Inc. on March 31, 2006, which significantly expanded its North American natural gas reserves and production. ConocoPhillips reported strong financial results, driven by higher crude oil prices and improved refining margins. The company's operations are diversified across six segments: Exploration and Production (E&P), Midstream, Refining and Marketing (R&M), LUKOIL Investment, Chemicals, and Emerging Businesses.

Key financial indicators showed growth, with sales and other operating revenues reaching $183.7 billionb and net income totaling $15.6 billion. The E&P segment, representing the largest portion of assets and income, benefited from the Burlington acquisition and strong commodity prices, despite a decrease in natural gas prices. The R&M segment also performed well, supported by robust refining and marketing margins in the U.S. The company continued to invest heavily in capital expenditures, totaling $15.6 billion, primarily directed towards E&P projects and integrating the Burlington acquisition, while also returning significant value to shareholders through dividends and share repurchases.

02—Key points

Key Highlights

  1. Completed the significant $33.9 billion acquisition of Burlington Resources Inc., bolstering North American natural gas presence.
  2. Reported strong financial performance with sales of $183.7 billion and net income of $15.6 billion.
  3. Exploration and Production (E&P) segment, the largest contributor, saw increased production and reserves due to the Burlington acquisition and higher crude oil prices.
  4. Refining and Marketing (R&M) segment benefited from improved U.S. refining and marketing margins.
  5. Significant capital expenditures of $15.6 billion were made, primarily in the E&P segment, for growth and development projects.
  6. The company's investment in LUKOIL increased to 20%, contributing significantly to equity earnings.
  7. Continued commitment to shareholder returns through $2.3 billion in dividends and substantial share repurchases.

03—Questions

Frequently Asked Questions

  1. What was the impact of the Burlington Resources acquisition on ConocoPhillips' operations and financials?

    The acquisition of Burlington Resources Inc. in March 2006 significantly expanded ConocoPhillips' asset base, particularly in North American natural gas reserves and production. It contributed to increased sales and production volumes across the Exploration and Production (E&P) segment and led to a substantial increase in goodwill and capital expenditures.

  2. How did commodity price fluctuations affect ConocoPhillips' performance in 2006?

    Higher crude oil prices positively impacted the E&P segment's results, while lower natural gas prices presented a headwind. The Refining and Marketing (R&M) segment's profitability was influenced by refining margins, which were generally strong in the U.S. due to high demand for gasoline and distillates.

  3. What are ConocoPhillips' main segments, and how did they perform in 2006?

    ConocoPhillips operates in six segments: E&P, Midstream, R&M, LUKOIL Investment, Chemicals, and Emerging Businesses. The E&P segment was the largest contributor to assets and income, driven by the Burlington acquisition and oil prices. The R&M segment saw improved margins and volumes. The LUKOIL Investment segment showed strong growth in equity earnings due to increased ownership and market conditions. Midstream and Chemicals also contributed positively.

  4. What is the company's outlook regarding future capital expenditures and strategic initiatives?

    ConocoPhillips budgeted $12.3 billion for capital expenditures and investments in 2007, with the majority directed towards the E&P segment. The company was also actively involved in seeking agreement on fiscal terms for a natural gas pipeline from Alaska's North Slope and was evaluating potential new upstream and downstream opportunities, including the significant EnCana heavy-oil joint venture.

04—Continue

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