Conoco News - 2011

News summaries from ConocoPhillips press releases and from unaffiliated news agencies are provided below. The summaries are sorted by month and are further categorized as upstream news, downstream news, and business/finance news.

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January

• Upstream news:

- ConocoPhillips [NYSE:COP] announced preliminary 2010 organic net proved reserve additions of 920 million barrels of oil equivalent (BOE). The Exploration and Production segment’s organic reserve replacement ratio is expected to be 138 percent of 2010 production. Acquisitions and dispositions are expected to reduce reserves by 2.2 billion BOE, primarily reflecting the company’s divestment of its interest in OAO LUKOIL. E&P production for the year is expected to be 665 million BOE, including fuel gas. LUKOIL production is expected to be 110 million BOE. ConocoPhillips expects to end 2010 with 8.3 billion BOE of proved reserves. The company will provide final information related to its 2010 oil and gas reserves and finding and development costs in its Annual Report on Form 10-K, expected to be filed with the SEC in late February.

• Downstream news:

- GE (NYSE: GE), NRG Energy, Inc. (NYSE: NRG) and ConocoPhillips (NYSE: COP) – are joining forces to become the premier investor and commercial collaboration partner for emerging and innovative energy technology companies. The companies have committed $300 million in capital to the new joint venture, Energy Technology Ventures, to fund approximately 30 venture- and growth-stage companies over the next four years. The first investments are in companies developing potentially game-changing technologies in solar photovoltaic (Alta Devices), cleaner coal (Ciris Energy, Inc.) and non-food biofuels (CoolPlanetBioFuels). The joint venture brings together three market-leading companies with complementary capabilities and significant strategic interests in the development of next-generation energy technology. This is the first corporate venture investment program by both NRG Energy – owner and operator of one of the country's largest and most diverse power generation portfolios – and ConocoPhillips – the third-largest US integrated energy company. GE Capital – through its business units GE Energy Financial Services and GE Capital, Equity – is already among the world’s most active energy technology venture and growth capital investors

• Business/Finance news:

- ConocoPhillips [NYSE:COP] will release its fourth-quarter earnings on Wednesday, January 26 at 8:30 a.m. Eastern time. The news release will be issued through Business Wire. In addition, a conference call with members of company management will be held at 11 a.m. Eastern time that day.

- The assemblage of residents and business owners leading an effort to block the shipment of massive oil processing equipment across northern Idaho appear to have given up — at least as it relates to shipments planned by the oil giant ConocoPhillips. Permits allow the company to move two giant coke drums, split into a total of four shipments, across the state and into Montana, where they are destined for a refinery in Billings. The loads, which would make their way in stages, at low speeds and only at night, are gargantuan, weighing hundreds of thousands of pounds and occupying the full width of the road in both directions for over 100 miles. The company has worked with transportation officials to refine and add pull-outs along the way to permit traffic to flow at regular intervals and to minimize blockages of the road. But residents — particularly those for whom Highway 12 represents the only route in or out of the area — have argued that traffic tie-ups are inevitable, and that the megaloads would damage a highway of unique historic and environmental value. They also fear that they are witnessing the transformation of Highway 12, which traverses some of the last and largest remaining tracts of wild land in the United States, into an oversize industrial corridor. At least two other companies — Imperial Oil and Harvest Energy — have plans to move hundreds of their own megaloads along the same route, this time headed for Canada’s oil sands.

- ConocoPhillips [NYSE:COP] reported fourth-quarter earnings of $2.0 billion, compared with fourth-quarter 2009 earnings of $1.3 billion. Excluding gains from asset dispositions, impairments and other items, fourth-quarter 2010 adjusted earnings were $1.9 billion, or $1.32 per share. For 2010, the company had earnings of $11.4 billion, compared with earnings of $4.4 billion in 2009. Excluding gains from asset dispositions, impairments and other items, 2010 adjusted earnings were $8.8 billionConocoPhillips [NYSE:COP] today reported fourth-quarter earnings of $2.0 billion, compared with fourth-quarter 2009 earnings of $1.3 billion. Excluding gains from asset dispositions, impairments and other items, fourth-quarter 2010 adjusted earnings were $1.9 billion, or $1.32 per share. For 2010, the company had earnings of $11.4 billion, compared with earnings of $4.4 billion in 2009. Excluding gains from asset dispositions, impairments and other items, 2010 adjusted earnings were $8.8 billion.

- ConocoPhillips [NYSE:COP] announced that Ryan Lance, senior vice president, Exploration and Production - International, will speak to investors and securities analysts at the Credit Suisse Energy Summit 2011 on Tuesday, February 8, at 12:20 p.m. Mountain time in Vail, CO. Investors can access the live webcast of Lance’s presentation at www.conocophillips.com/investor. An archived replay will be available shortly thereafter. ConocoPhillips [NYSE:COP] today announced that Ryan Lance, senior vice president, Exploration and Production - International, will speak to investors and securities analysts at the Credit Suisse Energy Summit 2011 on Tuesday, February 8, at 12:20 p.m. Mountain time in Vail, CO. Investors can access the live webcast of Lance’s presentation at www.conocophillips.com/investor. An archived replay will be available shortly thereafter. ConocoPhillips [NYSE:COP] today announced that Ryan Lance, senior vice president, Exploration and Production - International, will speak to investors and securities analysts at the Credit Suisse Energy Summit 2011 on Tuesday, February 8, at 12:20 p.m. Mountain time in Vail, CO. Investors can access the live webcast of Lance’s presentation at www.conocophillips.com/investor. An archived replay will be available shortly thereafter.

February

• Upstream news:

- ConocoPhillips [NYSE:COP] approved a 2011 capital program of $13.5 billion, representing a significant increase in Exploration and Production (E&P) segment expenditures. Almost 90 percent of the capital program will be in support of E&P, while the Refining and Marketing (R&M) segment represents about 9 percent of this year’s spending. The 2011 capital program is consistent with the company’s plan to enhance returns on equity through shifting capital to higher returning investments, maintaining capital discipline and funding growth in shareholder distributions.

• Downstream news:

- ConocoPhillips [NYSE:COP] announced that Australia Pacific LNG Pty Ltd ("APLNG") and China Petrochemical Corporation ("Sinopec") have signed an agreement establishing non-binding key commercial terms for the supply of up to 4.3 million tonnes per annum (MTPA) of LNG for 20 years. The agreement, known as a Heads of Agreement, also specifies terms under which Sinopec will subscribe for a 15 percent equity stake in APLNG, with ConocoPhillips and Origin Energy each reducing its interest to 42.5 percent. In addition to the signing of the Heads of Agreement, the APLNG project received Federal Environmental approval this week.

- ConocoPhillips and Marathon Oil said that they planned to shut the Kenai liquefied natural gas plant in Alaska in the coming months. Exports from Alaska could cease by April or May this year, a Conoco spokeswoman said. The small-scale plant, which has been shipping liquefied natural gas to Asia since 1969, will be mothballed for potential future use. Conoco, which operates and owns 70 percent of the plant, said “market conditions in Asia” were behind the decision to shut the plant, while Marathon, which owns the remaining 30 percent of the facility, said that domestic gas supply declines were also a factor. Liquefied gas demand in Asia soared last year as demand in the major importers Japan and Korea recovered from recession. The greater demand was met mainly by increases in Asian and Middle Eastern production, which kept the market well supplied in 2010. Kenai exports, which rely on the use of a single tanker, remained steady. Conoco and Marathon have a license to export liquefied natural gas from Alaska to Asia until 2013, under an extension granted last year

• Business/Finance news:

- ConocoPhillips [NYSE: COP] and the National Energy Education Development (NEED) Project will host 26 energy education workshops for K-12 educators during 2011. The workshops provide America’s teachers with classroom materials emphasizing all forms of energy, energy efficiency and conservation in order to improve and expand their students’ energy knowledge.

- ConocoPhillips [NYSE:COP] announced that Jim Mulva, chairman and chief executive officer, will speak to investors and securities analysts at the ISI Group 2011 Annual Conference on Tuesday, February 15, at 2:10 p.m. Eastern time in New York. Investors can access the live webcast of Mulva’s presentation at www.conocophillips.com/investor. An archived replay will be available shortly thereafter ConocoPhillips [NYSE:COP

- ConocoPhillips [NYSE:COP] announced a quarterly dividend of 66 cents per share, payable March 1, 2011, to stockholders of record at the close of business on February 22, 2011. This represents a 20 percent increase in the dividend rate. ConocoPhillips [NYSE:COP] today announced a quarterly dividend of 66 cents per share, payable March 1, 2011, to stockholders of record at the close of business on February 22, 2011. This represents a 20 percent increase in the dividend rate.

- The 24th annual ConocoPhillips Rodeo Run set a new course record with nearly 13,000 participants. This year the company raised $360,000 for the Houston Livestock Show and Rodeo™ Educational Fund. This was ConocoPhillips most successful Rodeo Run in history. Since the event began in 1988, the company has donated $2.9 million toward college scholarships for Texas youth

March

• Upstream news:

- ConocoPhillips [NYSE:COP] provided new information regarding sources of future reserves and production growth during its annual presentation to the financial community in New York. In addition, the company announced plans to sell an additional $5-10 billion of non-core assets over the next two years. ConocoPhillips initiated its multi year returns-enhancement plan in 2010, designed to improve capital efficiency, reduce debt and increase shareholder distributions. Proceeds from the increased asset sales are expected to be used primarily to fund the company’s recently announced $10 billion share repurchase program and for capital investment opportunities.

• Downstream news:

• Business/Finance news:

- For the fourth year in a row, ConocoPhillips [NYSE: COP] and Penn State University kick off the ConocoPhillips Energy Prize. Their goal is to see who can develop the most original and actionable solutions that can help improve the way the United States develops and uses energy. The competition, which began in 2008, awards up to $300,000 and recognizes innovative ideas and solutions in three areas: developing new energy sources, improving energy efficiency, and combating climate change. Registration for the 2011 ConocoPhillips Energy Prize is open through May 2, 2011. All U.S. residents who are at least 18 years of age at the time of entry are encouraged to participate in this competition. Entrants must submit a comprehensive proposal via the Internet at www.conocophillips.com/energyprize or by mail.

- ConocoPhillips announced that it would sell $5 billion to $10 billion of noncore assets in the next two years and use the proceeds to buy back shares and invest in its business. The move is part of a broader strategy to improve shareholder returns. In February, the company approved a $13.5 billion capital program, the bulk of which will go toward exploration and production. Only about 9 percent will be devoted to refining and marketing — activities like getting gasoline to the consumers at the pump. The company sells gasoline in Europe and the United States, mainly under the Phillips 66 and Conoco brands. In a related initiative, the company has been aggressively buying back shares. Last year, ConocoPhillips announced plans to buy back as much as $5 billion worth of shares. With $4 billion repurchased, ConocoPhillips said in February that it would buy back an additional $10 billion of stock. In the last two years, shares of ConocoPhillips have gained more than 80 percent, outperforming rivals like BP, Chevron and Exxon Mobil as well as the Standard & Poor’s 500-stock index.

- ConocoPhillips announced that it will contribute $1 million to the American Red Cross to assist in disaster relief efforts arising from the recent earthquake in Japan. This assistance is in addition to contributions and volunteer efforts already being made by various employee groups at the company.

- ConocoPhillips [NYSE:COP] will release its first-quarter earnings on Wednesday, April 27 at 8:30 a.m. Eastern time. The news release will be issued through Business Wire. In addition, a conference call with members of company management will be held at 11 a.m. Eastern time that day.

April

• Upstream news:

• Downstream news:

- Australia Pacific LNG Pty Ltd ("Australia Pacific LNG") and China Petroleum & Chemical Corporation ("Sinopec") signed a Sale and Purchase Agreement for the supply of 4.3 million tonnes per annum of LNG for 20 years from Australia Pacific LNG’s world-class coal seam gas resources and proposed LNG facility on Curtis Island, Gladstone in Queensland. Australia Pacific LNG and Sinopec International Petroleum Exploration & Production Corporation ("SIPC", a subsidiary 100% owned by Sinopec Group) also signed a Subscription Agreement for SIPC to subscribe for a 15% interest in Australia Pacific LNG thereby reducing ConocoPhillips’ and Origin Energy’s ownership interest to 42.5% respectively. These agreements reflect the commercial terms outlined in the Heads of Agreement signed between Australia Pacific LNG and Sinopec on 25 February 2011. The agreements are subject to approvals by the Chinese Government and in Australia, the Foreign Investment Review Board and are conditional on Australia Pacific LNG reaching a final investment decision

• Business/Finance news:

- ConocoPhillips [NYSE:COP] reported first-quarter earnings of $3.0 billion, compared with first-quarter 2010 earnings of $2.1 billion. Excluding gains from asset dispositions, first-quarter 2011 adjusted earnings were $2.6 billion, or $1.82 per share.

May

• Upstream news:

• Downstream news:

• Business/Finance news:

- ConocoPhillips [NYSE:COP] will webcast its 2011 Annual Meeting of Stockholders on Wednesday, May 11, at 10 a.m. Eastern time. ConocoPhillips [NYSE:COP] will webcast its 2011 Annual Meeting of Stockholders on Wednesday, May 11, at 10 a.m. Eastern time.

- ConocoPhillips [NYSE:COP] announced a quarterly dividend of 66 cents per share, payable June 1, 2011, to stockholders of record at the close of business on May 23, 2011.

- ConocoPhillips’ [NYSE:COP] Chairman and CEO Jim Mulva will appear May 12 at a Senate Finance Committee hearing in Washington, D.C., where he will outline the negative effects of proposed tax policy targeting major energy companies. Mulva expects to describe to committee members how misinformation about the industry’s tax liabilities is being used to justify proposed tax increases.

- ConocoPhillips [NYSE:COP] is making significant progress on its plan to deliver long-term value, the company said at its Annual Meeting of Shareholders. ConocoPhillips initiated its multi-year returns-enhancement plan in 2010, designed to increase distributions to shareholders, refocus the company’s portfolio and renew the company’s commitment to strategic, financial and operational discipline.

- ConocoPhillips [NYSE:COP] announced that Al Hirshberg, senior vice president, Planning and Strategy, will speak to investors and securities analysts at the UBS Global Oil and Gas Conference on Tuesday, May 24, at 11:20 a.m. Central time in Austin, TX. Investors can access the live webcast of Hirshberg's presentation at www.conocophillips.com/investor.

- ConocoPhillips [NYSE:COP] announced it will contribute $500,000 to the American Red Cross to assist in disaster relief efforts arising from the recent tornado in Joplin, Missouri.

June

• Upstream news:

- ConocoPhillips [NYSE:COP] announced it has signed a Production Sharing Contract (PSC) with the Government of Bangladesh and Petrobangla covering two blocks in the deepwater area of the Bay of Bengal, representing ConocoPhillips' first investment in the People's Republic of Bangladesh. ConocoPhillips holds 100 percent of the working interest in the PSC. Blocks DS-08-10 and DS-08-11 cover a total area of 5158 sq. km., (1.27 million acres), and are located in water depth of 1000-1500 meters (3,300-5,000 feet) approximately 280 kilometers (175 miles) from the port city of Chittagong. The area awarded under the PSC is in the Bangladesh portion of the Bay of Bengal, the largest submarine fan in the world. The deepwater area of Bangladesh is virtually unexplored, and ConocoPhillips' exploration efforts in Blocks DS-08-10 and DS-08-11 will begin as soon as possible with the acquisition of a large 2D seismic survey.

• Downstream news:

• Business/Finance news:

- ConocoPhillips [NYSE:COP] will release its second-quarter earnings on July 27 at 8:30 a.m. Eastern time. The news release will be issued through Business Wire. In addition, a conference call with members of company management will be held at 11 a.m. Eastern time that day. 

July

• Upstream news:

- Oil that spewed from an offshore drilling rig in northeastern China for two weeks last month has spread over 320 square miles, government officials acknowledged amid public uproar over why it took so long for fishermen, local residents and environmental groups to be informed of the spill. News of the accident emerged in late June on the microblogging site Sina Weibo. The government sought to play down the significance of the leak, saying the environmental repercussions were most likely insignificant and blaming the rig’s Western operator. Officials at the agency said ConocoPhillips China, a subsidiary of the Houston-based energy giant that operates the rigs with a Chinese state-owned company, “should take the blame” for the accident, which occurred in the mouth of the Bohai Sea, a largely enclosed body of water that touches on three provinces and the city of Tianjin. Speaking at a news conference, an official at the oceanic agency’s Beihai branch, said the minimum fine would be about $30,000, a figure that could rise depending on the extent of the economic and ecological damage. In an emailed statement, ConocoPhillips China said its workers quickly addressed the leaks and that there was no apparent impact on wildlife, fishing or shipping activities.” Upon observing the sheen, ConocoPhillips took prompt action, promptly reporting the incident to Chinese authorities and activating response procedures,” the statement said. The company owns a 49 percent stake in the venture, Penglai 19-3, which is the country’s largest offshore oil discovery, reportedly producing 150,000 barrels a day. It operates the rig with China’s National Offshore Oil Corporation. In recent days, several Chinese media outlets have reported die-offs among fish farmed in ocean enclosures, but such accounts could not be verified. According to the oceanic agency’s Web site, a leak was first detected June 4 and then again on June 17. It said the spills occurred during the drilling process, when water is forced into the earth’s crust. By June 19, the problem was under control, the agency said. The case comes nearly a year after a major oil spill near Dalian, not far from the Bohai Sea, that also raised questions about whether the government was giving an honest accounting — and whether there was lasting impact on aquatic life. In that spill, an explosion ruptured a pipeline at an onshore oil storage site run by the state-owned China National Petroleum Corporation, forcing emergency workers to empty the contents of an enormous oil tank. More than 11,000 barrels of oil flowed into the Yellow Sea, the government said, fouling miles of beaches and a large stretch of ocean. Environmental groups like Greenpeace, however, say the figure was much larger.

- ConocoPhillips [NYSE:COP] wishes to provide additional information in regards to the oil spill incidents that occurred in Bohai Bay, People’s Republic of China on June 4th and June 17th 2011, and the ongoing clean up and containment program that is underway. On June 4 seepage on the seabed was observed along a naturally occurring fault near the ConocoPhillips-operated Peng Lai B Platform. The majority of seepage has been stopped following prudent adjustment of certain production activities. A containment device was designed and constructed and put in place. There continues to be trace amounts of oil, estimated to be no more than a few liters per day, seeping intermittently and occasionally causing minor surface sheens. Booms are deployed around the immediate surface area and are containing and collecting any such oil. In a second incident, oil and gas bubbles were observed on the surface June 17 near another platform (C Platform) during drilling operations. The platform is about two miles away from the seabed seep near Platform B. Expert teams were immediately mobilized to contain the release. A cementing procedure successfully stopped the release within 48 hours, and the well was stabilized, plugged and abandoned. Trace amounts of bubbles are occasionally observed from the sea floor, and these bubbles continue to be monitored. Absorbent boom is in place in appropriate locations. Final clean up operations are ongoing. ConocoPhillips responded quickly to both events and mobilized extensive clean-up equipment, facilities and personnel, including substantial resources made available by our co-venturer China National Offshore Oil Corporation ("CNOOC"). Relevant authorities were promptly notified, along with CNOOC. Almost 3,000 meters of absorbent and inflatable booms were deployed to contain the oil sheen, and 33 vessels (workboats, fishing boats and tugs) supported clean-up activities. ConocoPhillips is appreciative of the support provided by CNOOC during the containment and cleanup effort and to the State Oceanic Administration (“SOA”) for their guidance during these unfortunate events. ConocoPhillips' current estimates of the aggregate amount of fluid spilled from the two incidents is 1,500 barrels (240 cubic meters) of oil and oil-based drilling fluids. The company is working with independent experts to validate the total spill quantity. During these incidents, no oil sheen reached the shoreline, and there were no injuries to personnel. On July 13th, the SOA instructed ConocoPhillips to suspend production from Platforms B and C, and this order was complied with immediately. This shut in will result in a temporary reduction of approximately 17,000 barrels of oil per day net after royalties to ConocoPhillips. According to the SOA order, this temporary shut in will be in effect until the risks of another spill are eliminated. While the detailed causes of these incidents are still under investigation, ConocoPhillips will continue to work diligently and safely to finalize clean up activities and will be implementing additional reservoir management and field operating procedures to eliminate risks of additional

- ConocoPhillips [NYSE:COP] announced that it has entered into an agreement to acquire up to 46,000 net acres of leasehold from Lario Oil & Gas Company in the Colorado counties of Arapahoe, Adams, Elbert and Douglas. This agreement represents a significant investment by ConocoPhillips in this area south and east of the greater Denver metroplex. ConocoPhillips will become operator of the acquired leases and will begin exploration efforts as soon as possible with the acquisition of a 3-D seismic survey and drilling of test wells. The company has a long track record of safe and environmentally prudent development of unconventional plays in North America and will leverage the knowledge and expertise it has gained in plays such as the San Juan Basin, Bakken, Barnett and Eagle Ford.

- ConocoPhillips [NYSE:COP] announced approval of the final investment decision for the initial train of a two train liquefied natural gas (LNG) 9.0 million tonnes per annum (MTPA) project by Australia Pacific LNG in Queensland, Australia. Project sanction includes development of the necessary resources from Australia Pacific LNG’s 24 trillion cubic feet of coal seam gas (CSG) resources in the Surat and Bowen Basins to supply the first train requirements, installation of a transmission pipeline from the onshore gas fields to the LNG facility on Curtis Island and infrastructure commitments to support a second train. LNG exports from the first train are scheduled to start in 2015 under a binding sales agreement for 4.3 MTPA with China Petroleum & Chemical Corporation (Sinopec Corp.).

• Downstream news:

• Business/Finance news:

- ConocoPhillips [NYSE:COP] announced a quarterly dividend of 66 cents per share, payable September 1, 2011, to stockholders of record at the close of business on July 25, 2011.

- Consistent with ConocoPhillips’ previously stated strategies and focus on value creation for its shareholders, ConocoPhillips’ board of directors has approved pursuing the separation of the company’s Refining & Marketing and Exploration & Production businesses into two stand-alone, publicly traded corporations via a tax-free spin of the refining and marketing business to ConocoPhillips shareholders. Following the completion of the proposed separation, ConocoPhillips will be a large and geographically diverse pure-play exploration and production company with strong returns and investment opportunities. The company’s strategy of enhancing returns on capital through developing new resources, growing reserves and production per share, continuing the asset sale program and increasing shareholder distributions will not change. As a separate company, the Refining and Marketing business of ConocoPhillips will be a leading pure-play independent refiner with a competitive and diverse set of assets. In addition to executing the company’s initiatives to improve downstream returns through portfolio rationalization and other operating efficiencies, the new downstream company will be able to further position its portfolio by pursuing transactions and investments across the value chain. Under the contemplated plan, both companies will be well positioned with financial strength and flexibility and experienced management teams committed to continued value creation.

- A decade ago, the oil and gas industry thought that bigger was better. Now, the refrain appears to be the exact opposite. ConocoPhillips became the latest energy giant to seek to break itself up, announcing that it will spin off its refining business to shareholders as a separate publicly traded company. The move is meant to help the two companies focus on their individual mandates, freeing ConocoPhillips to invest more in its higher-margin exploration operations. The spinoff, which is expected to be completed by the first half of next year, follows similar moves by companies such as Marathon Oil. Refining and marketing, known in the industry as downstream operations, are seen as slower-growing businesses compared with offshore oil and gas exploration. Once the breakup is complete, Mr. Mulva, who has led ConocoPhillips since the 2002 merger that created it, will retire. Mr. Mulva spearheaded the company’s years-long buying spree, striking 31 deals since the union of Conoco and Phillips Petroleum, according to data from Capital IQ. After the split, ConocoPhillips will remain focused on its exploration business, which already produces about 1.7 million barrels of oil equivalent a day and has more than eight billion barrels in reserves. The spun-off refinery operations will have a daily processing capacity of more than two million barrels, and will start life with positive cash flow that will be used for adding to infrastructure. ConocoPhillips plans to maintain its dividend, and expects to eventually raise that shareholder payout. The spun-out refining company is also expected to pay a dividend. The company has not yet outlined what the management teams for the individual businesses will look like. It also has not yet decided what to do with its midstream assets, which include transportation and processing facilities. Shareholders applauded the move, sending shares in ConocoPhillips up 1.63 percent to $75.61. Shares in the company have risen more than 45 percent over the past year. Many analysts were more measured, expressing skepticism about how much value would be unlocked by the business separation. Marathon benefited from the spinoff of its refining business because the company was trading at a 25 percent discount to the average of its peers, according to analysts at Morgan Stanley. ConocoPhillips already trades at a 15 percent premium.

- ConocoPhillips [NYSE:COP] reported $3.4 billion second-quarter earnings and $3.4 billion adjusted earnings. This compares with second-quarter 2010 earnings of $4.2 billion and adjusted earnings of $2.5 billion. ConocoPhillips recently announced its Board had approved pursuing the separation of the company’s Exploration & Production (E&P) and Refining & Marketing (R&M) businesses into two leading energy companies. The upstream company will be the largest U.S. pure-play E&P business, positioned for profitable growth from a rich resource base and a portfolio of quality investment opportunities. Production growth will come from investments in unconventional liquids-rich resource plays, SAGD oil sands, LNG, and ultimately from the company’s vast natural gas position as that market recovers. The new downstream company will be a low-cost, integrated refining, marketing and transportation organization, with complex refining assets, an investment grade credit rating and significant financial flexibility. E&P’s second-quarter 2011 adjusted earnings were higher, compared with the same period in 2010, primarily due to stronger commodity prices, partially offset by higher taxes. Production for the second quarter of 2011 was 1.64 million barrels of oil equivalent (BOE) per day, a decrease of approximately 90,000 BOE per day versus the same period in 2010. Excluding the impact of dispositions and the civil unrest in Libya, production exceeded levels from the second quarter of 2010 as new projects and lower downtime more than offset decline. Production per share, adjusted for Libya, increased 4 percent over the same period a year ago.

- ConocoPhillips (COP.N), which has plans to spin off its refining business, reported a lower quarterly profit that topped Wall Street expectations as higher crude oil prices helped its exploration and production business. Demand for fuel in developing countries including China and India and a recovering global economy have contributed to a rise in crude prices. Benchmark WTI oil averaged about $102 a barrel in the second quarter, up 32 percent from a year ago and natural gas prices rose 6 percent. The oil company's shares were up 0.1 percent at $73.76 on Wednesday morning when most other energy stocks were lower. Earlier this month, ConocoPhillips announced plans to split off its refining business as a stand-alone publicly traded company in an effort to improve investment returns for shareholders. That plan comes on the heels of another. In 2010, ConocoPhillips said it would sell mature assets and use the proceeds to buy back its shares, a strategy dubbed "shrink-to-grow" by some analysts.

August

• Upstream news:

- The Chinese maritime authority is preparing to sue ConocoPhillips, the American oil company, over two oil spills in June that engulfed large swaths of Bohai Bay in north China, according to a report by Xinhua, the state news agency. The report said the State Oceanic Administration was aiming to set up a team of lawyers by the end of the month to sue for compensation. It cited an agency spokesman as saying that 49 Chinese law firms had applied to provide legal assistance. The two spills, involving 3,200 barrels of oil and drilling fluids, occurred in the country’s largest offshore oilfield, called Penglai 19-3, and spread over at least 324 square miles in Bohai Bay. The Penglai field was co-developed by China National Offshore Oil Corporation, commonly known as Cnooc, and ConocoPhillips China operates it. As with a vast spill last year from a PetroChina port facility in the city of Dalian, which lies on the edge of the Bohai Sea, environmental advocates and residents of the affected areas have expressed anger with the government over delays in getting news or accurate reports of the spills. But this time, even more fury is directed at ConocoPhillips. That complicates the response of the Chinese government, because it is in the process of luring American companies to China to drill for oil and gas in shale fields. The Xinhua report said the oil spills had spread to beaches in the provinces of Hebei and Liaoning and were being blamed for a slowdown in local tourism and for economic damage to aquatic farming industries. The report also said “nine new oil spill sources” had been found in the bay as of Aug. 20. John Roper, a spokesman for ConocoPhillips, based in Houston, said in an e-mail message that the company had not received any notice of litigation. Georg Storaker, president of ConocoPhillips China, said at a news conference in Beijing that the spill in Bohai Bay should not be compared with the disastrous BP spill in 2010 in the Gulf of Mexico. Mr. Storaker’s comments drew derision from some Chinese news organizations and commentators. The English-language edition of Global Times, a populist newspaper, published an unsigned editorial lambasting ConocoPhillips.

• Downstream news:

• Business/Finance news:

- ConocoPhillips [NYSE:COP] announced that Jim Mulva, Chairman & CEO, will speak to investors and securities analysts at the Barclays 2011 CEO Energy-Power Conference on Wednesday, September 7, at 8:25 a.m. Eastern time in New York. Mr. Mulva will provide further information on the company’s repositioning plans to create two leading, independent companies. Investors can access the live webcast of Mr. Mulva's presentation at www.conocophillips.com/investor. An archived replay will be available shortly thereafter.

September

• Upstream news:

- ConocoPhillips (COP.N) said it had shut in production at its Magnolia oil and gas platform in the Gulf of Mexico and evacuated all workers as a tropical disturbance churned over the central part of the basin. The company said its net production from Magnolia averaged about 5,000 barrels of oil equivalent last year. ConocoPhillips said there was no storm impact on its Gulf Coast refineries

- ConocoPhillips China, a wholly owned subsidiary of ConocoPhillips (NYSE:COP) has been ordered by China’s State Oceanic Administration (SOA) to suspend production activities at the Peng Lai 19-3 field in Bohai Bay, China, pending certain steps. ConocoPhillips China is developing a compliance plan with its co-venturer in the field, China National Offshore Oil Corp., and will be submitting it to SOA shortly. Activities that are related to depressurizing the field will continue in a safe and environmentally responsible way. As operator of the field, ConocoPhillips China has been leading the response to two incidents that occurred on June 4 and June 17 and resulted in the release of approximately 700 barrels of oil into Bohai Bay and 2,500 barrels of mineral oil-based drilling mud onto the seabed. The Peng Lai 19-3 field has been operating at reduced rates since the incidents occurred in June. The shut down will have an impact on production from the field, which averaged approximately 56,000 net barrels of crude oil per day in 2010. ConocoPhillips holds a 49 percent interest in the Peng Lai 19-3 field which represents approximately 3 percent of the company’s total annual production.

- ConocoPhillips [NYSE:COP] announced that it will establish a fund related to the incidents at the Peng Lai 19-3 field in Bohai Bay, China. This fund will be designed to address ConocoPhillips’ responsibilities in accordance with relevant laws of China and to benefit the general environment in Bohai Bay.

- Expanded drilling for natural gas in massive shale formations across the United States is one way to create sorely needed jobs in this country, the chief executive of ConocoPhillips said. For example, exploration and production in formations like the Barnett Shale in North Texas and the Marcellus Shale in the Northeastern United States have created more than 200,000 jobs, the executive said. President Barack Obama unveiled a plan to bring down the jobless rate with a package of tax cuts to give incentives for hiring and spending paid for by tax increases on the wealthy and corporations. The country's jobless rate is at a high 9.1 percent. Conoco and other companies including Exxon Mobil Corp (XOM.N) have launched public-awareness campaigns that highlight natural gas as a plentiful, clean-burning domestic source of energy and employment. A spokeswoman for Houston-based Conoco declined to comment on the cost of the campaign.

- ConocoPhillips [NYSE:COP] announced that its Board of Directors approved the creation of a second fund and will work with co-venturer, China National Offshore Oil Corporation (CNOOC) or other appropriate parties to specifically address environmental issues in Bohai Bay, China. The company also reaffirmed its previous September 6, 2011 announcement to establish a separate fund to provide fair and reasonable compensation for any damages arising from the incidents at the Peng Lai 19-3 field in Bohai Bay. The company takes these actions in recognition of its obligations to the people and the government of China, and as part of its commitment to a long term relationship with them. ConocoPhillips will work cooperatively with the appropriate governmental authorities in regard to these funds. The incidents in Bohai Bay occurred on June 4 and June 17 and resulted in a total release of approximately 700 barrels (115 cubic meters) of oil into Bohai Bay and approximately 2,500 barrels (400 cubic meters) of mineral oil-based drilling mud (MOBM) on the seafloor. The Platform B fault has been sealed and the Platform C well permanently plugged and abandoned. The released oil has either been collected, evaporated, biodegraded or broken down to background levels by virtue of waves and currents. The company continues to survey and sample the seafloor immediately around Platform C and clean up any residual amounts of MOBM that are encountered. This work will continue until ConocoPhillips, CNOOC and Chinese authorities are satisfied that the clean up is complete. The company is currently in the process of implementing plans to depressurize the reservoir and take additional precautionary measures to prevent these incidents from recurring. ConocoPhillips is also preparing a new marine Environmental Impact Assessment and updating the Overall Development Plan as part of a phased recovery program. These plans are being carried out under the supervision of CNOOC and Chinese authorities.

- ConocoPhillips became the first U.S. major to buy Libyan oil following the end of international sanctions in a move to help the country restore normal oil trade after seven months of civil war. Trading sources told Reuters that tanker Hellas Warrior, which loaded 381,000 barrels of Sarir and Mesla crude, was bought by Conoco for delivery to France's Mediterranean port of Fos/Lavera, and one source said it was destined for Germany's MIRO refinery. Libya's Arabian Gulf Oil Company (Agoco) gave the cargo to Vitol in payment for oil product deliveries, and Vitol then sold it to Conoco, the sources said. U.S. companies were among the most active buyers of light and low-sulphur Libyan crude before the civil war and were the first to stop purchases after Washington and the European Union slapped sanctions on the government of now-ousted leader Muammar Gaddafi.

- Australian energy exploration firm New Standard Energy said it finalised an agreement to sell a majority stake in its Goldwyer shale gas project in Western Australia's Canning Basin to ConocoPhillips for A$109.5 ($107.529) million. ConocoPhillips , the first oil major to step into the fledgling Australian shale gas industry, will acquire 75 percent of the Goldwyer project over four phases of exploration, New Standard said in a statement. Some in the industry have high hopes for shale gas to become Australia's next wave of energy growth, following the nation's A$70 billion coal seam gas industry, but most experts agree significant production is still at least a decade away.

• Downstream news:

- ConocoPhillips [NYSE:COP] announced that it is seeking a buyer for its 185,000 barrel-per-day refinery in Trainer, Pa., and associated pipelines and terminals. ConocoPhillips will immediately begin the process of idling the facility and will permanently close the plant in six months if a sales transaction is unsuccessful. ConocoPhillips employees and contractors have been notified of the idling and potential permanent closure of the facility if a sales transaction cannot be completed. ConocoPhillips will redeploy employees to other positions within the company where possible. Employees who are not redeployed will receive severance benefits and job placement services.

- ConocoPhillips (COP.N) will sell or shutter its 185,000 barrels-per-day Trainer, Pennsylvania, refinery, the latest struggling East Coast plant to fall victim to poor margins. The company, which has moved to get rid of what it considers unprofitable operations, has already begun to idle the refinery and will close it permanently within six months if a buyer is not found. A permanent shutdown will likely leave the East Coast, which has seen two other refineries come up for sale or closure in September alone, even more reliant on fuel imports from Europe and Eastern Canada. The news helped push up gasoline prices both on the physical and futures markets, with RBOB gasoline futuresjumping nearly 5 percent on the New York Mercantile Exchange. East Coast plants, typically heavily reliant on costly crude imports from the North Sea and West Africa, have seen profits squeezed by rising prices for those grades in recent years. Sunoco Inc. (SUN.N) put over 500,000 bpd of refining capacity on the block this month, announcing it would shut its Marcus Hook and Philadelphia refineries in Pennsylvania if it could not find a buyer. Analysts say the poor economics for the region mean finding a buyer may not be easy. The plant could possibly draw interest from an international company like India's Reliance Industries (RELI.NS), but it will be a tough sell, she said.

• Business/Finance news:

- ConocoPhillips [NYSE:COP] will release its third-quarter earnings on Wednesday, October 26 at 8:00 a.m. Eastern time. In addition, a conference call with members of company management will be held at 11 a.m. Eastern time that day.

October

• Upstream news:

- China's biggest offshore oil producer, CNOOC, has been hit by another oil spill in north Chinese waters, state media reported on Saturday, following a June spill at a field jointly run with ConocoPhillips that sparked an official uproar. The latest spill broke out near the Jingzhou 9-3 field operated by a subsidiary of CNOOC in the Liaodong Bay off northeast China, Xinhua news agency reported. Maritime administrators announced an emergency and have sent a ship to the area after a belt of oil floated to the surface near a platform on the field. A construction ship struck an underground pipeline, the report said. It did not describe the scale of the spill and said the maritime administration ship was still investigating. Liaodong Bay is part of the bigger Bohai Bay, where CNOOC and its U.S. partner ConocoPhillips have been struggling with a spill in June that triggered government demands for tougher regulation of offshore oil operations. The leak from the Conoco-operated Penglai 19-3 oilfield released less oil in three months than BP's Gulf of Mexico spewed out in a single day, but the response from Beijing was vehement. Last month, authorities ordered the shutdown of the 168,000 barrels-per-day field, in which state-run CNOOC owns 51 percent. CNOOC cut its output target, though the production loss is seen as having only a minor impact on supplies to the world's No.5 crude producer. Chinese Premier Wen Jiabao said last month that the government will strictly control new petrochemical projects around Bohai Bay.

• Downstream news:

- Exxon Mobil Corp said it had no reason to believe an oil sheen on the Yellowstone River in Montana came from its Billings refinery but it had moved to contain the oil to minimize any environmental impact. "At approximately 3:30 p.m. on Friday, October 7, an oil sheen was observed on the Yellowstone River upstream of the refinery," Exxon spokeswoman Rachael Moore said. Moore said an oil-spill response team for the 60,000-barrels-per-day refinery had laid a containment boom at the point of origin.A spokesman for the Montana Department of Environmental Quality said ConocoPhillips' 58,000-bpd refinery in Billings is located north of Exxon's on the river and that they shared some pipelines and infrastructure. A spokesman for ConocoPhillips said it did not believe the sheen was related to them.

• Business/Finance news:

- The board of directors of ConocoPhillips [NYSE:COP] has elected Tan Sri Mohd Hassan Marican as a new outside director, effective December 1, 2011. The election of Mr. Marican increases the total number of ConocoPhillips directors to 14, of which 13 are outside directors.

- ConocoPhillips [NYSE:COP] announced a quarterly dividend of 66 cents per share, payable December 1, 2011, to stockholders of record at the close of business on October 17, 2011.

- ConocoPhillips [NYSE:COP] announced that its board of directors has chosen the leaders for the two independent energy companies that will result from the previously announced strategic repositioning of ConocoPhillips. Ryan M. Lance will become the chairman and chief executive officer of ConocoPhillips, the upstream company, and Greg C. Garland will become the chairman and chief executive officer of the downstream company. Jim Mulva, the current chairman and chief executive officer of ConocoPhillips will retire subsequent to completion of the separation. The repositioning is expected to be completed in the second quarter of 2012. Lance is currently senior vice president, Exploration and Production, International for ConocoPhillips. A petroleum engineer, he has over 26 years of oil and natural gas industry experience in senior management and technical positions with ConocoPhillips, predecessor Phillips Petroleum and various divisions of ARCO. Garland is currently senior vice president, Exploration and Production, Americas for ConocoPhillips. He began his career as a project engineer with Phillips Petroleum and has been associated with ConocoPhillips, its predecessors and affiliated companies for over 31 years. From 2008 to 2010, he was president and chief executive officer of Chevron Phillips Chemical Company, the 50-50 joint venture of ConocoPhillips and Chevron. ConocoPhillips’ interest in the joint venture will be transferred to the downstream company following the separation.

- The 2011 ConocoPhillips Energy Prize, a joint initiative between ConocoPhillips [NYSE:COP] and Penn State, concluded with its fourth annual mission to provoke and catalyze the 21st century energy revolution by awarding this year’s prize to Ben Glass and Adam Rein for their innovation, “Aerostat Platform for Rapid Deployment Airborne Wind Turbine,” a plan to make wind power literally leap out from the box by taking advantage of stronger and more-consistent winds higher in the air, seeking to hoist a wind-turbine up to 2,000 feet aloft.

- ConocoPhillips [NYSE:COP] reported third-quarter adjusted earnings of $3.5 billion and earnings of $2.6 billion. This compares with third-quarter 2010 adjusted earnings of $2.2 billion and earnings of $3.1 billion. Special items for the current quarter of $837 million were primarily related to losses on asset dispositions, impairments and a tax law change enacted in the United KingdomHOUSTON, October 26, 2011 - ConocoPhillips [NYSE:COP] today reported third-quarter adjusted earnings of $3.5 billion and earnings of $2.6 billion. This compares with third-quarter 2010 adjusted earnings of $2.2 billion and earnings of $3.1 billion. Special items for the current quarter of $837 million were primarily related to losses on asset dispositions, impairments and a tax law change enacted in the United Kingdom.

November

• Upstream news:

• Downstream news:

- Enterprise Products Partners said it is talks with co-owner ConocoPhillips for the 350,000 barrel per day Seaway Pipeline but says it is still committed to the Wrangler pipeline with Enbridge to carry crude out of the Midwest to the U.S. Gulf Coast. Conoco said it is selling its half of the crude oil pipeline which carries crude from Houston to Cushing, where high crude oil stocks have pushed down volumes on the line and the price of U.S. West Texas Intermediate. A reversal of the Seaway to carry crude from Cushing to the Gulf Coast refineries has been discussed but Enterprise said it was focusing on the joint venture Enbridge Wrangler project to carry crude out of the Midwest.

- ConocoPhillips [NYSE:COP] announced that the new independent downstream company created through its previously announced strategic repositioning will be named Phillips 66 and will be headquartered in Houston. Phillips 66 will have leading businesses in refining, marketing, midstream and chemicals.

- ConocoPhillips's spun-off refining arm will remain headquartered in Houston and go by the name of Phillips 66, the company said. In July, the company announced plans to split and create the top U.S. independent refining and exploration and production companies by mid-2012. The exploration arm will retain the ConocoPhillips name as well as the integrated company's current headquarters. The refining company, which also will include midstream, chemical and marketing divisions, will be in another location that has yet to be announced. The Phillips 66 name has been among the company's most-recognized brands for decades, first with Phillips Petroleum and then ConocoPhillips after its merger with Conoco in 2002. The first Phillips 66 gasoline station opened in 1927 in Wichita, Kansas. The same year the company acquired its first refinery near Borger, Texas, which is now a 146,000 barrel-per-day (bpd) plant co-owned with Canada's Cenovus. The refining company owns 11 plants outright in addition to the Borger plant and a second co-owned with Cenovus. In September the company idled its 185,000 bpd Trainer, Pennsylvania, refinery in the struggling East Coast market in hopes of selling it.

- ConocoPhillips [NYSE:COP] announced that as part of its ongoing strategy to create shareholder value it has entered into agreements to sell its interests in two U.S. pipeline companies for a total of $2 billion. ConocoPhillips has entered into definitive agreements with a subsidiary of Caisse de dépôt et placement du Québec (“CDPQ”) to sell its 16.55 percent interest in Colonial Pipeline Company and Colonial Ventures LLC (“Colonial”). The transaction is anticipated to close in the first quarter of 2012 following the completion of contractual Rights of First Refusal review by the existing shareholders in Colonial. In addition, ConocoPhillips has entered into definitive agreements with Enbridge Holdings (Seaway) L.L.C., a subsidiary of Enbridge (U.S.) Inc., to sell its ownership interest in the Seaway Crude Pipeline Company (SCPC). The transaction is anticipated to close in December, subject to satisfaction of customary conditions precedent and completion of certain arrangements regarding other logistics services currently provided by SCPC to ConocoPhillips.

• Business/Finance news:

- ConocoPhillips [NYSE:COP] announced several future appointments to the executive management teams of the two leading energy companies that will be created when ConocoPhillips completes its strategic repositioning, expected in the second quarter of 2012. The new ConocoPhillips will be an independent, pure-play exploration and production company. Phillips 66, the independent downstream company, will have leading businesses in refining, marketing, midstream and chemicals. The designated chief executive officers for each company are creating new leadership teams to support the independent companies. Ryan Lance, designated chairman and chief executive officer of the future ConocoPhillips, has selected three members of his executive management team.

- ConocoPhillips [NYSE:COP] announced that Jeff Sheets, Senior Vice President, Finance and Chief Financial Officer, will speak to investors and securities analysts at the Jefferies 2011 Global Energy Conference on Wednesday, November 30, at 1:00 p.m. Central time in Houston. Investors can access the live webcast of Mr. Sheet’s presentation at www.conocophillips.com/investor. An archived replay will be available shortly thereafter.

December

• Upstream news:

- ConocoPhillips [NYSE:COP] provided further details about the compensation and environmental funds that have been established in response to two separate accidents in Bohai Bay, China. The funds, first announced in September, recognize the company’s responsibility for the accidents and demonstrate its commitment to the people and government of China. Since ConocoPhillips announced the Bohai Bay Compensation Fund on September 6 and an environmental fund on September 18, the company has worked to design both funds to meet the long-term needs of communities in the Bohai Bay region. The Bohai Bay Compensation Fund will provide reasonable compensation for any damages caused by the June 2011 accidents that occurred at the Peng Lai 19-3 field in Bohai Bay. The fund will be independently administered and will provide compensation to affected people, communities and industries near Bohai Bay. The separate environmental fund will support research, restoration and other initiatives that enhance the marine environment and bring long-term benefit to the bay environment and its nearby communities. The environmental fund could support projects such as wetlands preservation, water quality improvement, fishery resources, marine ecosystems and risk management. ConocoPhillips is identifying leading independent experts who will provide guidance for the selection process and subsequent monitoring of the projects.

- The China unit of U.S. firm ConocoPhillips said it had submitted to the Chinese government a revised Overall Development Plan (ODP) for an offshore Chinese oilfield, which was ordered to shut down in September due to an oil spill. China's State Oceanic Administration (SOA) ordered ConocoPhillips China to halt all operations at Penglai 19-3 at Bohai Bay, China's largest offshore oilfield, after it said the company had failed to seal oil leaks. The oil spill, which began in June, polluted 6,200 square kilometres of waters, the administration said. The revised development plan, submitted to China's National Development & Reform Commission, includes measures such as reducing waterflood injection pressure, a ConocoPhillips China spokesperson said. Unexpected high pressure during oil drilling was one of the main reasons for the oil spill. Conoco is also working on a new Environmental Impact Assessment which has not been submitted to the Chinese government for approval. The oceanic administration has asked ConocoPhillips China to draw up a new environmental impact assessment report for the oilfield, which will only be allowed to resume operations after the reports have been approved by the government. Last month, the administration said the Bohai oil leak is a major accident caused by negligence.

• Downstream news:

- ConocoPhillips 356,000 barrel per day (bpd) joint-venture Wood River Refinery in Roxana, Illinois, had a fire in a coking unit drum and a process unit malfunction, according to a notice the refinery filed with state pollution regulators. Refinery emergency personnel responded to the blaze, according to the notice filed with the Illinois Emergency Management Agency.

• Business/Finance news:

- ConocoPhillips [NYSE:COP] reported on the progress of its three-year strategic plan to improve returns and create value for its shareholders. The company also announced a 2012 capital program of $15.5 billion and a program to repurchase up to an additional $10 billion of the company’s common stock. The company additionally provided an update on its $15-20 billion asset divestiture program for 2010-2012. The company is also on track to complete its plans to reposition into two leading energy companies during the second quarter of 2012. The downstream company, Phillips 66, will offer a unique approach to downstream integration, comprising segment-leading refining and marketing, midstream and chemicals businesses. ConocoPhillips will become one of the largest and most diverse global pure-play exploration and production companies.

- ConocoPhillips [NYSE:COP] announced several future appointments to the executive management team of Phillips 66, the independent downstream company, which will become effective once the company’s strategic repositioning is complete in the second quarter of 2012. Greg Garland, designated chairman and chief executive officer of Phillips 66, has named three additional members of his executive management team.