ConocoPhillips Reports 1Q Results

ConocoPhillips reported first-quarter net income of $3,291 million, or $2.34 per share, compared to $2,912 million, or $2.05 per share, for the same quarter in 2005. Total revenues were $47.9b, versus $38.9 billion a year ago. During the quarter, the company reinvested 141 percent of its net income into the development of oil and gas resources and its global refining business, excluding the acquisition of Burlington Resources. “We ended the quarter by successfully completing the acquisition of Burlington Resources and are pleased with the progress toward integrating the combined companies,” said Jim Mulva, chairman and chief executive officer. “This transaction establishes ConocoPhillips as the leading natural gas producer in North America, with a portfolio comprised mainly of high-quality, long-life natural gas reserves. “In addition, we finalized the acquisition of the Wilhelmshaven, Germany, refinery, in line with our strategy to expand our global refining presence. We also advanced plans to upgrade the refinery to allow it to process higher sulfur crude oil into an array of more valuable light-end products. “With respect to our upstream operating performance, we produced 1.93 million BOE per day, including 1.61 million BOE per day from our Exploration and Production segment and an estimated 0.32 million BOE per day from our LUKOIL Investment segment. E&P production was negatively impacted by unscheduled production shutdowns. These operating results do not reflect the acquisition of Burlington Resources, which was completed at the close of business on March 31. “In our downstream business, our worldwide refining crude oil capacity utilization rate was 85 percent. We experienced significant unplanned downtime and heavy refining turnaround activity, due in part to turnarounds we delayed in response to the 2005 hurricanes. “ We ended the quarter with debt of $32.2 billion and a debt-to-capital ratio of 30 percent, due to the acquisition of Burlington Resources. Cash at the end of the quarter was $3.0 billion. During the quarter, we generated $4.8 billion in cash from operations; funded $4.6 billion in capital projects, investments and loans to affiliates, excluding the acquisition of Burlington Resources; and paid $496 million in dividends, which reflects a 16 percent increase to 36 cents per share.”