8-KEarnings & ResultsExhibits & Filings

CONOCOPHILLIPS 8-K Report, Financial Results (Oct 22, 2008)

Filed October 22, 2008For Securities:COP

Summary

This 8-K filing by ConocoPhillips, dated October 22, 2008, primarily serves to announce the company's financial and operating results for the third quarter ended September 30, 2008. The report references a press release (Exhibit 99.1) and supplemental financial information (Exhibit 99.2) that provide detailed operational and financial performance data for the period. Investors should note the company's use of non-GAAP financial measures, specifically adjustments for a Venezuela impairment charge previously taken in the second quarter of 2007. Management has included these adjusted figures to offer a clearer view of ongoing earnings and to facilitate comparisons with prior and future periods, excluding the impact of the Venezuelan asset expropriation. This approach aims to present a more representative picture of the company's core operational performance independent of the significant, non-recurring charge from the prior year.

Key Highlights

  • 1ConocoPhillips reported its third-quarter 2008 financial and operating results on October 22, 2008.
  • 2The filing incorporates by reference a press release (Exhibit 99.1) and supplemental financial information (Exhibit 99.2) detailing the quarterly performance.
  • 3The company utilized non-GAAP financial measures in its reporting.
  • 4Key non-GAAP measures include earnings, diluted earnings per share, and E&P earnings adjusted for a Venezuela impairment.
  • 5The Venezuela impairment adjustment relates to a second-quarter 2007 charge for expropriated oil interests.
  • 6Management's rationale for using these non-GAAP measures is to provide a better indicator of ongoing earnings and facilitate period-over-period comparisons.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially announce ConocoPhillips' financial and operating results for the third quarter ended September 30, 2008, and to provide access to the related press release and supplemental financial information.

ConocoPhillips is reporting non-GAAP measures, specifically adjusted earnings for a Venezuela impairment, because management believes these figures better reflect the company's ongoing operational performance and provide a more useful basis for comparison with prior and future periods, excluding the impact of a significant, prior-year charge related to expropriated Venezuelan assets.

The Venezuela impairment refers to a charge the company took in the second quarter of 2007 for the complete impairment of its expropriated Venezuelan oil interests. This charge is being excluded from certain reported non-GAAP earnings figures to highlight the company's current operational performance.

The detailed financial and operating results for the third quarter of 2008 are available in the press release (Exhibit 99.1) and supplemental financial information (Exhibit 99.2) that are furnished with this 8-K filing and incorporated herein by reference.