8-KEarnings & ResultsExhibits & Filings

CONOCOPHILLIPS 8-K Report, Financial Results (Jul 25, 2007)

Filed July 25, 2007For Securities:COP

Summary

This 8-K filing by ConocoPhillips, dated July 25, 2007, reports on the company's financial and operating results for the second quarter ended June 30, 2007. The primary focus is the announcement of these results via a press release, which is furnished as an exhibit. Investors should note that ConocoPhillips is presenting certain non-GAAP financial measures to offer a clearer view of its ongoing operational performance, specifically by adjusting for a significant charge related to the complete impairment of its Venezuelan oil interests. The company believes that by excluding this substantial, non-recurring charge, investors will gain a better understanding of the core business's profitability and trends when compared to prior and future periods. This adjustment is applied to earnings, diluted earnings per share, exploration and production (E&P) earnings, and the effective tax rate. The filing also incorporates by reference additional financial and operational tables, as well as supplemental financial information that provides further detail on the reported results.

Key Highlights

  • 1ConocoPhillips reported its Q2 2007 financial and operating results on July 25, 2007.
  • 2The company is presenting non-GAAP financial measures to exclude the impact of a Venezuela impairment charge.
  • 3The impairment charge relates to the complete write-off of ConocoPhillips' Venezuelan oil interests.
  • 4Adjusted measures include earnings, diluted EPS, E&P earnings, and effective tax rate.
  • 5Management believes these non-GAAP measures provide a better indication of ongoing earnings and are useful for period-to-period comparisons.
  • 6The press release announcing the results is furnished as Exhibit 99.1.
  • 7Additional financial and operational data are provided in Exhibits 99.2 and 99.3.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly announce ConocoPhillips' financial and operating results for the second quarter ended June 30, 2007, through the furnishing of a press release and related financial information.

The 'Venezuela impairment' refers to a significant charge recorded by ConocoPhillips in the second quarter of 2007, resulting in the complete write-off of the company's investment and interests in its Venezuelan oil operations.

ConocoPhillips is presenting non-GAAP financial measures, adjusted for the Venezuela impairment, because management believes these figures provide a more accurate reflection of the company's ongoing operational performance and are more useful for comparing its results against historical and future periods, free from the impact of this specific, non-recurring charge.

Investors can find more detailed financial information in the exhibits accompanying this 8-K filing, specifically Exhibit 99.1 (the press release), Exhibit 99.2 (financial and operational tables), and Exhibit 99.3 (supplemental financial information).