8-KEarnings & ResultsExhibits & Filings

CONOCOPHILLIPS 8-K Report, Financial Results (Jan 23, 2008)

Filed January 23, 2008For Securities:COP

Summary

ConocoPhillips filed an 8-K on January 23, 2008, to report its financial and operating results for the fourth quarter ended December 31, 2007. The filing primarily serves to furnish the press release and supporting financial and operational tables announcing these results. Investors should note that the company is presenting certain non-GAAP financial measures, specifically adjusted earnings and adjusted diluted earnings per share, excluding a second-quarter 2007 impairment charge related to its Venezuelan oil interests. Management highlights that these non-GAAP measures are considered useful for understanding ongoing earnings performance and for comparing results across periods. While the specific financial figures from the press release are not detailed within the 8-K itself, this filing directs investors to the provided exhibits (99.1, 99.2, and 99.3) for a comprehensive understanding of the fourth-quarter 2007 performance and the rationale behind the adjusted financial reporting.

Key Highlights

  • 1ConocoPhillips announced its fourth quarter and full-year 2007 financial and operating results via a press release filed with the 8-K.
  • 2The filing incorporates by reference the January 23, 2008 press release (Exhibit 99.1) and additional financial/operational tables (Exhibit 99.2, 99.3).
  • 3The company is presenting non-GAAP financial measures: adjusted earnings, adjusted diluted earnings per share, and adjusted E&P earnings.
  • 4These adjusted measures exclude a significant impairment charge from the second quarter of 2007 related to Venezuelan oil interests.
  • 5Management believes these non-GAAP figures offer a better indication of ongoing operational performance and facilitate period-over-period comparisons.
  • 6The 8-K itself does not contain the detailed financial results but directs investors to the furnished exhibits.

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally report ConocoPhillips' financial and operating results for the fourth quarter ended December 31, 2007, by furnishing the related press release and supplemental financial information.

ConocoPhillips is using non-GAAP financial measures, such as adjusted earnings and adjusted diluted earnings per share, to provide investors with a clearer view of the company's ongoing operational performance. These measures exclude a significant impairment charge taken in the second quarter of 2007 related to Venezuelan oil interests, which management believes distorts comparability with current and future results.

The detailed financial and operating results for the fourth quarter of 2007 are not provided directly within the text of the 8-K. Investors can find this information by reviewing the exhibits filed with the 8-K, specifically Exhibit 99.1 (the press release), Exhibit 99.2 (financial and operational tables), and Exhibit 99.3 (supplemental financial information).

The filing refers to a 'second-quarter 2007 Venezuela impairment' which represented the complete write-down of ConocoPhillips' investment in its Venezuelan oil interests. This significant charge is being excluded from certain reported financial metrics to present a view of ongoing operational performance.