Summary
ConocoPhillips reported strong financial performance for 2011, with net income attributable to the company increasing by 9% to $12.4 billion. This growth was driven by higher commodity prices in the Exploration and Production (E&P) segment and improved refining margins in the Refining and Marketing (R&M) segment. The company also benefited from lower impairment charges compared to the previous year. Significant strategic initiatives were underway, including the planned separation of its downstream businesses (refining, marketing, and transportation) into a new publicly traded company named Phillips 66, expected to be completed in the second quarter of 2012. This move aims to create a pure-play exploration and production company and a separate, focused downstream entity. ConocoPhillips continued its robust shareholder return program, repurchasing approximately $11.1 billion of its common stock in 2011, bringing the total repurchase amount since the inception of its programs to $15 billion. The company also increased its quarterly dividend by 20% and reduced its debt by 4%. Looking ahead, ConocoPhillips projected a capital program of $15.5 billion for 2012, with a focus on E&P investments.
Financial Highlights
49 data points| Revenue | $64.20B |
| R&D Expenses | $193.00M |
| SG&A Expenses | $865.00M |
| Operating Expenses | $50.67B |
| Operating Income | $7.13B |
| Interest Expense | $1.23B |
| Net Income | $12.44B |
| EPS (Basic) | $9.04 |
| EPS (Diluted) | $8.97 |
| Shares Outstanding (Basic) | 1.38M |
| Shares Outstanding (Diluted) | 1.39M |
Key Highlights
- 1Net income attributable to ConocoPhillips increased by 9% to $12.4 billion in 2011.
- 2The company announced the planned separation of its downstream assets into a new entity, Phillips 66, expected to be completed in Q2 2012.
- 3ConocoPhillips repurchased approximately $11.1 billion of its common stock in 2011, demonstrating a commitment to returning capital to shareholders.
- 4Capital expenditures and investments totaled $13.3 billion in 2011, with a significant portion allocated to the Exploration and Production segment.
- 5Refining margins improved significantly in 2011, leading to a substantial increase in earnings for the Refining and Marketing segment.
- 6Debt levels were reduced by 4% in 2011, contributing to a healthy balance sheet with a debt-to-capital ratio of 26% at year-end.
- 7The company's E&P segment benefited from higher crude oil and natural gas liquids prices, despite a slight decrease in production volumes.