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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________________ to ___________________
Commission file number: 001-32395
ConocoPhillips_2023_Logo.jpg
ConocoPhillips
(Exact name of registrant as specified in its charter)
Delaware01-0562944
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
925 N. Eldridge Parkway, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
281-293-1000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbols
Name of each exchange on which registered
Common Stock, $.01 Par Value
COP
New York Stock Exchange
7% Debentures due 2029
CUSIP—718507BK1
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer        Accelerated filer        Non-accelerated filer        Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
The registrant had 1,169,533,976 shares of common stock, $.01 par value, outstanding at March 31, 2024.


Table of Contents


Commonly Used Abbreviations
Commonly Used Abbreviations
The following industry-specific, accounting and other terms, and abbreviations may be commonly used in this report.
Currencies
Accounting
$ or USD
U.S. dollar
ARO
asset retirement obligation
CAD
Canadian dollar
ASC
accounting standards codification
EUR
Euro
ASU
accounting standards update
GBP
NOK
British pound
Norwegian kroner
DD&A
depreciation, depletion and amortization
FASB
Financial Accounting Standards
Board
Units of Measurement
BBL
barrel
FIFO
first-in, first-out
BCF
billion cubic feet
G&A
general and administrative
BOE
barrel of oil equivalent
GAAP
generally accepted accounting principles
MBD
thousands of barrels per day
MCF
thousand cubic feet
LIFO
last-in, first-out
MM
million
NPNS
normal purchase normal sale
MMBOE
million barrels of oil equivalent
PP&E
properties, plants and equipment
MBOED
thousand barrels of oil equivalent per day
VIE
variable interest entity
MMBOED
million barrels of oil equivalent
per day
MMBTU
million British thermal units
Miscellaneous
MMCFD
MTPA
million cubic feet per day
million tonnes per annum
CERCLAFederal Comprehensive Environmental Response Compensation and Liability Act
DEI
diversity, equity and inclusion
Industry
EPA
Environmental Protection Agency
BLM
Bureau of Land Management
ESG
environmental, social and governance
CBM
coalbed methane
EU
European Union
CCS
carbon capture and storage
FERC
Federal Energy Regulatory Commission
E&P
exploration and production
FEED
front-end engineering and design
GHG
greenhouse gas
FIDfinal investment decision
HSE
health, safety and environment
FPS
floating production system
ICC
International Chamber of Commerce
FPSOfloating production, storage and
ICSID
World Bank’s International

offloading
Centre for Settlement of
G&G
geological and geophysical
Investment Disputes
JOA
joint operating agreement
IRS
Internal Revenue Service
LNG
liquefied natural gas
OTC
over-the-counter
NGLs
natural gas liquids
NYSE
New York Stock Exchange
OPEC
Organization of Petroleum
SEC
U.S. Securities and Exchange
Exporting Countries
Commission
PSC
production sharing contract
TSR
total shareholder return
PUDs
proved undeveloped reserves
U.K.
United Kingdom
SAGD
steam-assisted gravity drainage
U.S.
United States of America
WCS
Western Canadian Select
VROCvariable return of cash
WTI
West Texas Intermediate
1
ConocoPhillips      2024 Q1 10-Q

Financial Statements
PART I. Financial Information
Item 1.    Financial Statements
Consolidated Income Statement
ConocoPhillips

Millions of Dollars

Three Months Ended
March 31
20242023
Revenues and Other Income
Sales and other operating revenues
$13,848 14,811 
Equity in earnings of affiliates
421 499 
Gain (loss) on dispositions
93 93 
Other income
114 114 
Total Revenues and Other Income
14,476 15,517 
Costs and Expenses

Purchased commodities
5,334 6,138 
Production and operating expenses
2,015 1,779 
Selling, general and administrative expenses
178 159 
Exploration expenses
112 138 
Depreciation, depletion and amortization
2,211 1,942 
Impairments
 1 
Taxes other than income taxes
555 576 
Accretion on discounted liabilities
80 68 
Interest and debt expense
205 188 
Foreign currency transaction (gain) loss
(18)(44)
Other expenses
(4)10 
Total Costs and Expenses
10,668 10,955 
Income (loss) before income taxes
3,808 4,562 
Income tax provision (benefit)
1,257 1,642 
Net Income (Loss)
$2,551 2,920 
Net Income (Loss) Per Share of Common Stock (dollars)
Basic$2.16 2.38 
Diluted2.15 2.38 
Weighted-Average Common Shares Outstanding (in thousands)
Basic1,177,921 1,220,228 
Diluted1,180,320 1,223,355 
See Notes to Consolidated Financial Statements.
ConocoPhillips      2024 Q1 10-Q
2

Financial Statements
Consolidated Statement of Comprehensive Income
ConocoPhillips
Millions of Dollars
Three Months Ended
March 31
20242023
Net Income (Loss)
$2,551 2,920 
Other comprehensive income (loss)
Defined benefit plans
Reclassification adjustment for amortization of prior service cost (credit) included in net income (loss)
(9)(9)
Net change(9)(9)
Reclassification adjustment for amortization of net actuarial losses (gains) included in net income (loss)
16 23 
Net change16 23 
Income taxes on defined benefit plans
(2)(3)
Defined benefit plans, net of tax
5 11 
Unrealized holding gain (loss) on securities
(4)6 
Reclassification adjustment for (gain) loss included in net income (loss) (1)
Income taxes on unrealized holding gain (loss) on securities
1 (1)
Unrealized holding gain (loss) on securities, net of tax
(3)4 
Foreign currency translation adjustments, net of tax
(230)(42)
Unrealized gain (loss) on hedging activities(20) 
Income taxes on unrealized gain (loss) on hedging activities4  
Unrealized gain (loss) on hedging activities, net of tax(16) 
Other Comprehensive Income (Loss), Net of Tax
(244)(27)
Comprehensive Income (Loss)
$2,307 2,893 
See Notes to Consolidated Financial Statements.
3
ConocoPhillips      2024 Q1 10-Q

Financial Statements
Consolidated Balance Sheet
ConocoPhillips
Millions of Dollars

March 31
2024
December 31
2023
Assets


Cash and cash equivalents
$5,574 5,635 
Short-term investments
487 971 
Accounts and notes receivable (net of allowance of $4 and $3, respectively)
5,444 5,461 
Accounts and notes receivable—related parties
14 13 
Inventories
1,443 1,398 
Prepaid expenses and other current assets
759 852 
Total Current Assets
13,721 14,330 
Investments and long-term receivables
9,132 9,130 
Net properties, plants and equipment (net of accumulated DD&A of $75,697 and $74,361, respectively)
69,907 70,044 
Other assets
2,588 2,420 
Total Assets
$95,348 95,924 
Liabilities

Accounts payable
$5,101 5,083 
Accounts payable—related parties
37 34 
Short-term debt
1,113 1,074 
Accrued income and other taxes
2,116 1,811 
Employee benefit obligations
405 774 
Other accruals
1,391 1,229 
Total Current Liabilities
10,163 10,005 
Long-term debt
17,304 17,863 
Asset retirement obligations and accrued environmental costs
7,141 7,220 
Deferred income taxes
8,776 8,813 
Employee benefit obligations
967 1,009 
Other liabilities and deferred credits
1,672 1,735 
Total Liabilities
46,023 46,645 
Equity

Common stock (2,500,000,000 shares authorized at $0.01 par value)
Issued (2024—2,106,777,461 shares; 2023—2,103,772,516 shares)
Par value
21 21 
Capital in excess of par
61,300 61,303 
Treasury stock (at cost: 2024—937,243,485 shares; 2023—925,670,961 shares)
(66,974)(65,640)
Accumulated other comprehensive income (loss)
(5,917)(5,673)
Retained earnings
60,895 59,268 
Total Equity
49,325 49,279 
Total Liabilities and Equity
$95,348 95,924 
See Notes to Consolidated Financial Statements.
ConocoPhillips      2024 Q1 10-Q
4

Financial Statements
Consolidated Statement of Cash Flows
ConocoPhillips

Millions of Dollars

Three Months Ended
March 31

20242023
Cash Flows From Operating Activities
Net income (loss)
$2,551 2,920 
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation, depletion and amortization
2,211 1,942 
Impairments
 1 
Dry hole costs and leasehold impairments
19 68 
Accretion on discounted liabilities
80 68 
Deferred taxes
87 324 
Distributions more (less) than income from equity affiliates
308 491 
(Gain) loss on dispositions
(93)(93)
Other
(66)(35)
Working capital adjustments

Decrease (increase) in accounts and notes receivable
(76)1,701 
Decrease (increase) in inventories
(55)(45)
Decrease (increase) in prepaid expenses and other current assets
74 255 
Increase (decrease) in accounts payable
(85)(1,266)
Increase (decrease) in taxes and other accruals
30 (928)
Net Cash Provided by Operating Activities
4,985 5,403 
Cash Flows From Investing Activities

Capital expenditures and investments
(2,916)(2,897)
Working capital changes associated with investing activities
169 208 
Acquisition of businesses, net of cash acquired
49  
Proceeds from asset dispositions
173 188 
Net sales (purchases) of investments
405 1,065 
Other
(21)(12)
Net Cash Used in Investing Activities
(2,141)(1,448)
Cash Flows From Financing Activities
Repayment of debt
(505)(43)
Issuance of company common stock
(61)(97)
Repurchase of company common stock
(1,325)(1,700)
Dividends paid
(924)(1,488)
Other
(10)2 
Net Cash Used in Financing Activities
(2,825)(3,326)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
(73)(104)
Net Change in Cash, Cash Equivalents and Restricted Cash
(54)525 
Cash, cash equivalents and restricted cash at beginning of period
5,899 6,694 
Cash, Cash Equivalents and Restricted Cash at End of Period
$5,845 7,219 
Restricted cash of $271 million and $264 million is included in the "Other assets" line of our Consolidated Balance Sheet as of March 31, 2024 and December 31, 2023, respectively.
See Notes to Consolidated Financial Statements.
5
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
Note 1—Basis of Presentation
The interim-period financial information presented in the financial statements included in this report is unaudited and, in the opinion of management, includes all known accruals and adjustments necessary for a fair presentation of the consolidated financial position of ConocoPhillips, its results of operations and cash flows for such periods. All such adjustments are of a normal and recurring nature unless otherwise disclosed. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes included in our 2023 Annual Report on Form 10-K.

Note 2—Inventories
Millions of Dollars
March 31
2024
December 31
2023
Crude oil and natural gas
$723 676 
Materials and supplies
720 722 
Total inventories
$1,443 1,398 
Inventories valued on the LIFO basis
$437 401 

Note 3—Acquisitions and Dispositions
Surmont Acquisition
In October 2023, we completed our acquisition of the remaining 50 percent working interest in Surmont, an asset in our Canada segment, from TotalEnergies EP Canada Ltd. The final consideration for the all-cash transaction was $3.0 billion after customary adjustments (CAD $4.1 billion):

Fair value of considerationMillions of Dollars
Cash paid$2,635 
Contingent consideration320 
Final Consideration$2,955 

The contingent consideration arrangement requires additional consideration to be paid to TotalEnergies EP Canada Ltd. up to $0.4 billion CAD over a five-year term. The contingent payments represent $2 million for every dollar that WCS pricing exceeds $52 per barrel during the month, subject to certain production targets being achieved. The undiscounted amount we could pay under this arrangement is up to $0.3 billion USD. The fair value of the contingent consideration on the acquisition date was $320 million and estimated by applying the income approach. As of March 31, 2024, we have made payments of $12 million USD under this arrangement, reflected in the "Other" line within the Financing Activities section of our Consolidated Statement of Cash Flows. See Note 11.

The transaction was accounted for as a business combination under FASB ASC Topic 805 using the acquisition method, which requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. By the end of the first quarter of 2024, we finalized the allocation of the purchase price to specific assets and liabilities. It was based on the fair value of final consideration and the conclusion of the fair value determination of long-lived assets and all other assets acquired and liabilities assumed.

Oil and gas properties were valued using a discounted cash flow approach incorporating market participant and internally generated price assumptions, production profiles and operating and development cost assumptions. The fair values of other assets acquired and liabilities assumed, which included accounts receivable, accounts payable, and most other current assets and current liabilities, were determined to be equivalent to the carrying value due to their short-term nature. The total consideration of $3 billion was allocated to the identifiable assets and liabilities based on fair values as of the acquisition date of October 4, 2023.
ConocoPhillips      2024 Q1 10-Q
6

Notes to Consolidated Financial Statements
Recognized amounts of identifiable assets acquired and liabilities assumedMillions of Dollars
Oil and gas properties$3,082 
Asset retirement obligations(112)
Other(15)
Total identifiable net assets$2,955 

With the completion of the transaction, we have acquired proved and unproved properties of approximately $2.9 billion and $0.2 billion, respectively.

Supplemental Pro Forma (unaudited)
The following table summarizes the unaudited supplemental pro forma financial information for the three-month period ending March 31, 2023, as if we had completed the acquisition on January 1, 2022.

Millions of Dollars
Three Months Ended
March 31, 2023
Supplemental Pro Forma (unaudited)As ReportedPro Forma SurmontPro Forma Combined
Total Revenues and Other Income$15,517 603 16,120 
Income (loss) before income taxes4,562 70 4,632 
Net Income (Loss)2,920 53 2,973 
Earnings per share ($ per share):
Basic net income (loss)$2.38 2.43 
Diluted net income (loss)2.38 2.42 
The unaudited supplemental pro forma financial information is presented for illustration purposes only and is not necessarily indicative of the operating results that would have occurred had the transaction been completed on January 1, 2022, nor is it necessarily indicative of future operating results of the combined entity. The unaudited pro forma financial information for the three-month period ended March 31, 2023, is a result of combining the consolidated income statement of ConocoPhillips with the results of the assets acquired from TotalEnergies EP Canada Ltd. The pro forma results do not include transaction-related costs, nor any cost savings anticipated as a result of the transaction. The pro forma results include adjustments which relate primarily to DD&A, which is based on the unit-of-production method, resulting from the purchase price allocated to oil and gas properties. We believe the estimates and assumptions are reasonable, and the relative effects of the transaction are properly reflected.

7
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Note 4—Investments and Long-Term Receivables
Australia Pacific LNG Pty Ltd. (APLNG)
In Australia, we hold a 47.5 percent shareholding interest in APLNG. At March 31, 2024, the outstanding balance of APLNG's debt was $4.5 billion under various previously entered facilities. The last principal and interest payment on these facilities is due in September 2030. See Note 8.
At March 31, 2024, the carrying value of our equity method investment in APLNG was approximately $5.2 billion.
Port Arthur LNG (PALNG)
In March 2023, we acquired a 30 percent direct equity investment in PALNG, a joint venture for the development of a large-scale LNG facility. At March 31, 2024, the carrying value of our equity method investment in PALNG was approximately $1.3 billion.
QatarEnergy LNG
Our equity method investments in Qatar include the following:
QatarEnergy LNG N(3) (N3)—30 percent owned joint venture with affiliates of QatarEnergy (68.5 percent) and Mitsui & Co., Ltd. (1.5 percent)—produces and liquefies natural gas from Qatar’s North Field, as well as exports LNG.
QatarEnergy LNG NFE(4) (NFE4)—25 percent owned joint venture with an affiliate of QatarEnergy (75 percent)—participant in the North Field East LNG project.
QatarEnergy LNG NFS(3) (NFS3)—25 percent owned joint venture with an affiliate of QatarEnergy (75 percent)—participant in the North Field South LNG project.

At March 31, 2024, the carrying value of our equity method investments in Qatar was approximately $1.1 billion.

Note 5—Debt
Our debt balance at March 31, 2024 was $18.4 billion, compared with $18.9 billion at December 31, 2023. In March 2024, the company retired $461 million principal amount of our 2.125% Notes at maturity.

Our revolving credit facility provides a total borrowing capacity of $5.5 billion with an expiration date of February 2027. Our revolving credit facility may be used for direct bank borrowings, the issuance of letters of credit totaling up to $500 million, or as support for our commercial paper program. The revolving credit facility is broadly syndicated among financial institutions and does not contain any material adverse change provisions or any covenants requiring maintenance of specified financial ratios or credit ratings. The facility agreement contains a cross-default provision relating to the failure to pay principal or interest on other debt obligations of $200 million or more by ConocoPhillips, or any of its consolidated subsidiaries. The amount of the facility is not subject to redetermination prior to its expiration date.
Credit facility borrowings may bear interest at a margin above the Secured Overnight Financing Rate (SOFR). The facility agreement calls for commitment fees on available, but unused, amounts. The facility agreement also contains early termination rights if our current directors or their approved successors cease to be a majority of the Board of Directors.
The revolving credit facility supports our ability to issue up to $5.5 billion of commercial paper. Commercial paper is generally limited to maturities of 90 days and is included in short-term debt on our consolidated balance sheet. With no commercial paper outstanding and no direct borrowings or letters of credit, we had access to $5.5 billion in available borrowing capacity under our revolving credit facility at March 31, 2024, and at December 31, 2023.

We do not have any ratings triggers on any of our corporate debt that would cause an automatic default, and thereby impact our access to liquidity upon downgrade of our credit ratings. If our credit ratings are downgraded from their current levels, it could increase the cost of corporate debt available to us and restrict our access to the commercial paper markets. If our credit ratings were to deteriorate to a level prohibiting us from accessing the commercial paper market, we would still be able to access funds under our revolving credit facility.
At March 31, 2024, we had $283 million of certain variable rate demand bonds (VRDBs) outstanding with maturities ranging through 2035. The VRDBs are redeemable at the option of the bondholders on any business day. If they are ever redeemed, we have the ability and intent to refinance on a long-term basis; therefore, the VRDBs are included in the “Long-term debt” line on our consolidated balance sheet.
ConocoPhillips      2024 Q1 10-Q
8

Notes to Consolidated Financial Statements
Note 6—Changes in Equity
Millions of Dollars
Common Stock
Par
Value
Capital in
Excess of
Par
Treasury
Stock
Accum. Other
Comprehensive
Income (Loss)
Retained
Earnings
Total
For the three months ended March 31, 2024
Balances at December 31, 2023$21 61,303 (65,640)(5,673)59,268 49,279 
Net income (loss)2,551 2,551 
Other comprehensive income (loss)(244)(244)
Dividends declared
Ordinary ($0.58 per common share)
(687)(687)
Variable return of cash ($0.20 per common share)
(237)(237)
Repurchase of company common stock(1,325)(1,325)
Excise tax on share repurchases(9)(9)
Distributed under benefit plans(3)(3)
Balances at March 31, 2024$21 61,300 (66,974)(5,917)60,895 49,325 
Millions of Dollars
Common Stock
Par
Value
Capital in
Excess of
Par
Treasury
Stock
Accum. Other
Comprehensive
Income (Loss)
Retained
Earnings
Total
For the three months ended March 31, 2023
Balances at December 31, 2022$21 61,142 (60,189)(6,000)53,029 48,003 
Net income (loss)2,920 2,920 
Other comprehensive income (loss)(27)(27)
Dividends declared
Ordinary ($0.51 per common share)
(625)(625)
Variable return of cash ($0.60 per common share)
(731)(731)
Repurchase of company common stock(1,700)(1,700)
Excise tax on share repurchases(15)(15)
Distributed under benefit plans
(42)(42)
Balances at March 31, 2023
$21 61,100 (61,904)(6,027)54,593 47,783 

Note 7—Suspended Wells
The capitalized cost of suspended wells at March 31, 2024 was $163 million, a decrease of $21 million from December 31, 2023. In the first quarter of 2024, after further evaluation, we recognized dry hole expenses of $18 million for the suspended Busta discovery well on license PL782S in the North Sea.
9
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Note 8—Guarantees
At March 31, 2024, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability because the fair value of the obligation is immaterial. In addition, unless otherwise stated, we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence.
APLNG Guarantees
At March 31, 2024, we had multiple guarantees outstanding in connection with our 47.5 percent ownership interest in APLNG. The following is a description of the guarantees with values calculated utilizing March 2024 exchange rates:
During the third quarter of 2016, we issued a guarantee to facilitate the withdrawal of our pro-rata portion of the funds in a project finance reserve account. We estimate the remaining term of this guarantee to be seven years. Our maximum exposure under this guarantee is approximately $210 million and may become payable if an enforcement action is commenced by the project finance lenders against APLNG. At March 31, 2024, the carrying value of this guarantee was approximately $14 million.

In conjunction with our original purchase of an ownership interest in APLNG from Origin Energy Limited in October 2008, we agreed to reimburse Origin Energy Limited for our share of the existing contingent liability arising under guarantees of an existing obligation of APLNG to deliver natural gas under several sales agreements. The final guarantee expires in the fourth quarter of 2041. Our maximum potential liability for future payments, or cost of volume delivery, under these guarantees is estimated to be $680 million ($1.1 billion in the event of intentional or reckless breach) and would become payable if APLNG fails to meet its obligations under these agreements and the obligations cannot otherwise be mitigated. Future payments are considered unlikely, as the payments, or cost of volume delivery, would only be triggered if APLNG does not have enough natural gas to meet these sales commitments and if the co-venturers do not make necessary equity contributions into APLNG.
We have guaranteed the performance of APLNG with regard to certain other contracts executed in connection with the project’s continued development. The guarantees have remaining terms of 13 to 22 years or the life of the venture. Our maximum potential amount of future payments related to these guarantees is approximately $480 million and would become payable if APLNG does not perform. At March 31, 2024, the carrying value of these guarantees was approximately $34 million.

QatarEnergy LNG Guarantees
We have guaranteed our portion of certain fiscal and other joint venture obligations as a shareholder in NFE4 and NFS3. These guarantees have an approximate 30-year term with no maximum limit. At March 31, 2024, the carrying value of these guarantees was approximately $14 million.

Other Guarantees
We have other guarantees with maximum future potential payment amounts totaling approximately $620 million, which consist primarily of guarantees of the residual value of leased office buildings and guarantees of the residual value of corporate aircraft. These guarantees have remaining terms of one to five years and would become payable if certain asset values are lower than guaranteed amounts at the end of the lease or contract term, business conditions decline at guaranteed entities, or as a result of nonperformance of contractual terms by guaranteed parties. At March 31, 2024, there was no carrying value associated with these guarantees.
Indemnifications
Over the years, we have entered into agreements to sell ownership interests in certain legal entities, joint ventures and assets that gave rise to qualifying indemnifications. These agreements include indemnifications for taxes and environmental liabilities. The carrying amount recorded for these indemnification obligations at March 31, 2024, was approximately $20 million. Those related to environmental issues have terms that are generally indefinite, and the maximum amounts of future payments are generally unlimited. Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable estimate of the maximum potential amount of future payments. See Note 9 for additional information about environmental liabilities.
ConocoPhillips      2024 Q1 10-Q
10

Notes to Consolidated Financial Statements
Note 9—Contingencies, Commitments and Accrued Environmental Costs
A number of lawsuits involving a variety of claims arising in the ordinary course of business have been filed against ConocoPhillips. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the low end of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. We accrue receivables for insurance or other third-party recoveries when applicable. With respect to income tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain.
Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures. Estimates particularly sensitive to future changes include contingent liabilities recorded for environmental remediation, tax and legal matters. Estimated future environmental remediation costs are subject to change due to such factors as the uncertain magnitude of cleanup costs, the unknown time and extent of such remedial actions that may be required, and the determination of our liability in proportion to that of other responsible parties. Estimated future costs related to tax and legal matters are subject to change as events evolve and as additional information becomes available during the administrative and litigation processes.
Environmental
We are subject to international, federal, state and local environmental laws and regulations and record accruals for environmental liabilities based on management’s best estimates. These estimates are based on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. EPA or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable.
Although liability of those potentially responsible for environmental remediation costs is generally joint and several for federal sites and frequently so for other sites, we are usually only one of many companies cited at a particular site. Due to the joint and several liabilities, we could be responsible for all cleanup costs related to any site at which we have been designated as a potentially responsible party. We have been successful to date in sharing cleanup costs with other financially sound companies. Many of the sites at which we are potentially responsible are still under investigation by the EPA or the agency concerned. Prior to actual cleanup, those potentially responsible normally assess the site conditions, apportion responsibility and determine the appropriate remediation. In some instances, we may have no liability or may attain a settlement of liability. Where it appears that other potentially responsible parties may be financially unable to bear their proportional share, we consider this inability in estimating our potential liability, and we adjust our accruals accordingly. As a result of various acquisitions in the past, we assumed certain environmental obligations. Some of these environmental obligations are mitigated by indemnifications made by others for our benefit, and some of the indemnifications are subject to dollar limits and time limits.
We are currently participating in environmental assessments and cleanups at numerous CERCLA and other comparable state and international sites. After an assessment of environmental exposures for cleanup and other costs, we make accruals on an undiscounted basis (except those acquired in a purchase business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated. We have not reduced these accruals for possible insurance recoveries.
For remediation activities in the U.S. and Canada, our consolidated balance sheet included a total environmental accrual of $184 million at both March 31, 2024 and December 31, 2023. We expect to incur a substantial amount of these expenditures within the next 30 years. In the future, we may be involved in additional environmental assessments, cleanups and proceedings.
11
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Litigation and Other Contingencies
We are subject to various lawsuits and claims including, but not limited to, matters involving oil and gas royalty and severance tax payments, gas measurement and valuation methods, contract disputes, environmental damages, climate change, personal injury, and property damage. Our primary exposures for such matters relate to alleged royalty and tax underpayments on certain federal, state and privately owned properties, claims of alleged environmental contamination and damages from historic operations and climate change. We will continue to defend ourselves vigorously in these matters.
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required.
We have contingent liabilities resulting from throughput agreements with pipeline and processing companies not associated with financing arrangements. Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized. In addition, at March 31, 2024, we had performance obligations secured by letters of credit of $369 million (issued as direct bank letters of credit) related to various purchase commitments for materials, supplies, commercial activities and services incident to the ordinary conduct of business.
In 2007, ConocoPhillips was unable to reach agreement with respect to the empresa mixta structure mandated by the Venezuelan government’s Nationalization Decree. As a result, Venezuela’s national oil company, Petróleos de Venezuela, S.A. (PDVSA), or its affiliates, directly assumed control over ConocoPhillips’ interests in the Petrozuata and Hamaca heavy oil ventures and the offshore Corocoro development project. In response to this expropriation, ConocoPhillips initiated international arbitration on November 2, 2007, with the ICSID. On September 3, 2013, an ICSID arbitration tribunal ("Tribunal") held that Venezuela unlawfully expropriated ConocoPhillips’ significant oil investments in June 2007. On January 17, 2017, the Tribunal reconfirmed the decision that the expropriation was unlawful. In March 2019, the Tribunal unanimously ordered the government of Venezuela to pay ConocoPhillips approximately $8.7 billion in compensation for the government’s unlawful expropriation of the company’s investments in Venezuela in 2007. On August 29, 2019, the Tribunal issued a decision rectifying the award and reducing it by approximately $227 million. The award now stands at $8.5 billion plus interest. The government of Venezuela sought annulment of the award, which automatically stayed enforcement of the award. On September 29, 2021, the ICSID annulment committee lifted the stay of enforcement of the award. The annulment proceedings are underway.
In 2014, ConocoPhillips filed a separate and independent arbitration under the rules of the ICC against PDVSA under the contracts that had established the Petrozuata and Hamaca projects. The ICC Tribunal issued an award in April 2018, finding that PDVSA owed ConocoPhillips approximately $2 billion under their agreements in connection with the expropriation of the projects and other pre-expropriation fiscal measures. In August 2018, ConocoPhillips entered into a settlement with PDVSA to recover the full amount of this ICC award, plus interest through the payment period, including initial payments totaling approximately $500 million within a period of 90 days from the time of signing the settlement agreement. The balance of the settlement was to be paid quarterly over a period of four and a half years. Per the settlement, PDVSA recognized the ICC award as a judgment in various jurisdictions, and ConocoPhillips agreed to suspend its legal enforcement actions. ConocoPhillips sent notices of default to PDVSA on October 14 and November 12, 2019, and to date PDVSA has failed to cure its breach. As a result, ConocoPhillips has resumed legal enforcement actions. To date, ConocoPhillips has received approximately $777 million in connection with the ICC award. ConocoPhillips has ensured that the settlement and any actions taken in enforcement thereof meet all appropriate U.S. regulatory requirements, including those related to any applicable sanctions imposed by the U.S. against Venezuela.
In 2016, ConocoPhillips filed a separate and independent arbitration under the rules of the ICC against PDVSA under the contracts that had established the Corocoro Project. On August 2, 2019, the ICC Tribunal awarded ConocoPhillips approximately $33 million plus interest under the Corocoro contracts. ConocoPhillips is seeking recognition and enforcement of the award in various jurisdictions. ConocoPhillips has ensured that all the actions related to the award meet all appropriate U.S. regulatory requirements, including those related to any applicable sanctions imposed by the U.S. against Venezuela.

ConocoPhillips      2024 Q1 10-Q
12

Notes to Consolidated Financial Statements
Beginning in 2017, governmental and other entities in several states/territories in the U.S. have filed lawsuits against oil and gas companies, including ConocoPhillips, seeking compensatory damages and equitable relief to abate alleged climate change impacts. Additional lawsuits with similar allegations are expected to be filed. The legal and factual issues are unprecedented, therefore, there is significant uncertainty about the scope of the claims and alleged damages and any potential impact on the Company’s financial condition. ConocoPhillips believes these lawsuits are factually and legally meritless and are an inappropriate vehicle to address the challenges associated with climate change and will vigorously defend against such lawsuits.

Several Louisiana parishes and the State of Louisiana have filed numerous lawsuits under Louisiana’s State and Local Coastal Resources Management Act (SLCRMA) against oil and gas companies, including ConocoPhillips, seeking compensatory damages for contamination and erosion of the Louisiana coastline allegedly caused by historical oil and gas operations. ConocoPhillips entities are defendants in 22 of the lawsuits and will vigorously defend against them. On October 17, 2022, the Fifth Circuit affirmed remand of the lead case to state court and the subsequent request for rehearing was denied. On February 27, 2023, the Supreme Court denied a certiorari petition from the defendants regarding the Fifth Circuit ruling. Accordingly, the federal district courts have issued remands to state court. Because Plaintiffs’ SLCRMA theories are unprecedented, there is uncertainty about these claims (both as to scope and damages) and we continue to evaluate our exposure in these lawsuits.
In October 2020, the Bureau of Safety and Environmental Enforcement (BSEE) ordered the prior owners of Outer Continental Shelf (OCS) Lease P-0166, including ConocoPhillips, to decommission the lease facilities, including two offshore platforms located near Carpinteria, California. This order was sent after the current owner of OCS Lease P-0166 relinquished the lease and abandoned the lease platforms and facilities. BSEE’s order to ConocoPhillips is premised on its connection to Phillips Petroleum Company, a legacy company of ConocoPhillips, which held a historical 25 percent interest in this lease and operated these facilities but sold its interest approximately 30 years ago. ConocoPhillips continues to evaluate its exposure in this matter.

In July 2021, a federal securities class action was filed against Concho, certain of Concho’s officers, and ConocoPhillips as Concho’s successor in the United States District Court for the Southern District of Texas. On October 21, 2021, the court issued an order appointing Utah Retirement Systems and the Construction Laborers Pension Trust for Southern California as lead plaintiffs (Lead Plaintiffs). On January 7, 2022, the Lead Plaintiffs filed their consolidated complaint alleging that Concho made materially false and misleading statements regarding its business and operations in violation of the federal securities laws and seeking unspecified damages, attorneys’ fees, costs, equitable/injunctive relief, and such other relief that may be deemed appropriate. The defendants filed a motion to dismiss the consolidated complaint on March 8, 2022. On June 23, 2023, the court denied defendants’ motion as to most defendants including Concho/ConocoPhillips. We believe the allegations in the action are without merit and are vigorously defending this litigation.

ConocoPhillips is involved in pending disputes with commercial counterparties relating to the propriety of its force majeure notices following Winter Storm Uri in 2021. We believe these claims are without merit and are vigorously defending them.
13
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Note 10—Derivative and Financial Instruments
We use futures, forwards, swaps and options in various markets to meet our customers' needs, capture market opportunities and manage foreign exchange currency risk.
Commodity Derivative Instruments
Our commodity business primarily consists of natural gas, crude oil, bitumen, NGLs, LNG and power.
Commodity derivative instruments are held at fair value on our consolidated balance sheet. Where these balances have the right of setoff, they are presented on a net basis. Related cash flows are recorded as operating activities on our consolidated statement of cash flows. On our consolidated income statement, gains and losses are recognized either on a gross basis if directly related to our physical business or a net basis if held for trading. Gains and losses related to contracts that meet and are designated with the NPNS exception are recognized upon settlement. We generally apply this exception to eligible crude contracts and certain gas contracts. We do not apply hedge accounting for our commodity derivatives.
The following table presents the gross fair values of our commodity derivatives, excluding collateral, on our consolidated balance sheet:
Millions of Dollars
March 31
2024
December 31
2023
Assets
Prepaid expenses and other current assets
$600 611 
Other assets
125 113 
Liabilities
Other accruals
569 567 
Other liabilities and deferred credits
104 80 
The gains (losses) from commodity derivatives included in our consolidated income statement are presented in the following table:
Millions of Dollars
Three Months Ended
March 31
20242023
Sales and other operating revenues
$54 28 
Other income
 1 
Purchased commodities
(50)(72)
The table below summarizes our net exposures resulting from outstanding commodity derivative contracts:
Open Position
Long (Short)
March 31
2024
December 31
2023
Commodity
Natural gas and power (billions of cubic feet equivalent)
Fixed price(14)(12)
Basis(6)(2)
ConocoPhillips      2024 Q1 10-Q
14

Notes to Consolidated Financial Statements
Interest Rate Derivative Instruments
For the three-month period ended March 31, 2024, we recognized an unrealized loss of $20 million in other comprehensive income related to our share of PALNG's interest rate swaps designated as a cash flow hedge.

Financial Instruments
We invest in financial instruments with maturities based on our cash forecasts for the various accounts and currency pools we manage. The types of financial instruments in which we currently invest include:
Time deposits: Interest bearing deposits placed with financial institutions for a predetermined amount of time.
Demand deposits: Interest bearing deposits placed with financial institutions. Deposited funds can be withdrawn without notice.
Commercial paper: Unsecured promissory notes issued by a corporation, commercial bank or government agency purchased at a discount, reaching par value at maturity.
U.S. government or government agency obligations: Securities issued by the U.S. government or U.S. government agencies.
Foreign government obligations: Securities issued by foreign governments.
Corporate bonds: Unsecured debt securities issued by corporations.
Asset-backed securities: Collateralized debt securities.
The following investments are carried on our consolidated balance sheet at cost, plus accrued interest, and the table reflects remaining maturities at March 31, 2024, and December 31, 2023:
Millions of Dollars
Carrying Amount
Cash and Cash Equivalents
Short-Term Investments
March 31
2024
December 31
2023
March 31
2024
December 31
2023
Cash$576 474 
Demand Deposits
1,553 1,424 
Time Deposits
1 to 90 days
3,399 3,713 121 511 
91 to 180 days
22 
Within one year
3 3 
U.S. Government Obligations
1 to 90 days
38 24   
$5,566 5,635 124 536 
15
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
The following investments in debt securities classified as available for sale are carried at fair value on our consolidated balance sheet at March 31, 2024, and December 31, 2023:
Millions of Dollars
Carrying Amount
Cash and Cash EquivalentsShort-Term InvestmentsInvestments and Long-Term
Receivables
March 31
2024
December 31
2023
March 31
2024
December 31
2023
March 31
2024
December 31
2023
Major Security Type
Corporate Bonds
$  181 201 670 606 
Commercial Paper
8  98 131 
U.S. Government Obligations  75 89 172 189 
U.S. Government Agency Obligations
 5 7 7 
Foreign Government Obligations
7 7 4 4 
Asset-Backed Securities
2 2 213 183 
$8  363 435 1,066 989 
Cash and Cash Equivalents and Short-Term Investments have remaining maturities within one year. Investments and Long-Term Receivables have remaining maturities greater than one year through five years.
The following table summarizes the amortized cost basis and fair value of investments in debt securities classified as available for sale:
Millions of Dollars
Amortized Cost Basis
Fair Value
March 31
2024
December 31
2023
March 31
2024
December 31
2023
Major Security Type
Corporate Bonds
$852 806 851 807 
Commercial Paper
106 131 106 131 
U.S. Government Obligations
249 278 247 278 
U.S. Government Agency Obligations
7 12 7 12 
Foreign Government Obligations
11 11 11 11 
Asset-Backed Securities
215 184 215 185 
$1,440 1,422 1,437 1,424 
As of March 31, 2024 total unrealized losses for debt securities classified as available for sale with net losses were $5 million. As of December 31, 2023, total unrealized gains for debt securities classified as available for sale with net gains were $5 million. No allowance for credit losses has been recorded on investments in debt securities which are in an unrealized loss position.
For the three-month periods ended March 31, 2024 and March 31, 2023, proceeds from sales and redemptions of investments in debt securities classified as available for sale were $222 million and $300 million, respectively. Gross realized gains and losses included in earnings from those sales and redemptions were negligible. The cost of securities sold and redeemed is determined using the specific identification method.
ConocoPhillips      2024 Q1 10-Q
16

Notes to Consolidated Financial Statements
Credit Risk
Financial instruments potentially exposed to concentrations of credit risk consist primarily of cash equivalents, short-term investments, long-term investments in debt securities, OTC derivative contracts and trade receivables. Our cash equivalents and short-term investments are placed in high-quality commercial paper, government money market funds, U.S. government and government agency obligations, time deposits with major international banks and financial institutions, high-quality corporate bonds, foreign government obligations and asset-backed securities. Our long-term investments in debt securities are placed in high-quality corporate bonds, asset-backed securities, U.S. government and government agency obligations, and foreign government obligations.
The credit risk from our OTC derivative contracts, such as forwards, swaps and options, derives from the counterparty to the transaction. Individual counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. We also use futures, swaps and option contracts that have a negligible credit risk because these trades are cleared primarily with an exchange clearinghouse and subject to mandatory margin requirements until settled; however, we are exposed to the credit risk of those exchange brokers for receivables arising from daily margin cash calls, as well as for cash deposited to meet initial margin requirements.
Our trade receivables result primarily from our petroleum operations and reflect a broad national and international customer base, which limits our exposure to concentrations of credit risk. The majority of these receivables have payment terms of 30 days or less, and we continually monitor this exposure and the creditworthiness of the counterparties. We may require collateral to limit the exposure to loss including letters of credit, prepayments and surety bonds, as well as master netting arrangements to mitigate credit risk with counterparties that both buy from and sell to us, as these agreements permit the amounts owed by us or owed to others to be offset against amounts due to us.
Certain of our derivative instruments contain provisions that require us to post collateral if the derivative exposure exceeds a threshold amount. We have contracts with fixed threshold amounts and other contracts with variable threshold amounts that are contingent on our credit rating. The variable threshold amounts typically decline for lower credit ratings, while both the variable and fixed threshold amounts typically revert to zero if we fall below investment grade. Cash is the primary collateral in all contracts; however, many also permit us to post letters of credit as collateral, such as transactions administered through the New York Mercantile Exchange.
The aggregate fair value of all derivative instruments with such credit risk-related contingent features that were in a liability position at March 31, 2024, and December 31, 2023, was $163 million and $181 million, respectively. For these instruments, no collateral was posted at March 31, 2024 and December 31, 2023. If our credit rating had been downgraded below investment grade at March 31, 2024, we would have been required to post $139 million of additional collateral, either with cash or letters of credit.
17
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Note 11—Fair Value Measurement
We carry a portion of our assets and liabilities at fair value that are measured at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability) and disclosed according to the quality of valuation inputs under the fair value hierarchy.
The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborated market data becomes available. Assets and liabilities initially reported as Level 2 are subsequently reported as Level 3 if corroborated market data is no longer available. There were no material transfers into or out of Level 3 during the three-month period ended March 31, 2024, nor during the year ended December 31, 2023.
Recurring Fair Value Measurement
Financial assets and liabilities reported at fair value on a recurring basis include our investments in debt securities classified as available for sale, commodity derivatives and our contingent consideration arrangement related to the Surmont acquisition. See Note 3.
Level 1 derivative assets and liabilities primarily represent exchange-traded futures and options that are valued using unadjusted prices available from the underlying exchange. Level 1 financial assets also include our investments in U.S. government obligations classified as available for sale debt securities, which are valued using exchange prices.
Level 2 derivative assets and liabilities primarily represent OTC swaps, options and forward purchase and sale contracts that are valued using adjusted exchange prices, prices provided by brokers or pricing service companies that are all corroborated by market data. Level 2 financial assets also include our investments in debt securities classified as available for sale, including investments in corporate bonds, commercial paper, asset-backed securities, U.S. government agency obligations and foreign government obligations that are valued using pricing provided by brokers or pricing service companies that are corroborated with market data.
Level 3 derivative assets and liabilities consist of OTC swaps, options and forward purchase and sale contracts where a significant portion of fair value is calculated from underlying market data that is not readily available. The derived value uses industry standard methodologies that may consider the historical relationships among various commodities, modeled market prices, time value, volatility factors and other relevant economic measures. The use of these inputs results in management’s best estimate of fair value. Level 3 commodity derivative activity was not material for all periods presented.
Level 3 liabilities include the fair value of future quarterly contingent payments to TotalEnergies EP Canada Ltd. in connection with the acquisition of the remaining 50 percent working interest in Surmont completed in 2023. Contingent consideration consists of total payments up to approximately $0.4 billion CAD over a five-year term ending in the fourth quarter of 2028. The contingent payments represent $2 million for every dollar that the monthly WCS average pricing exceeds $52 per barrel. The terms include adjustments related to not achieving certain production targets. During the first quarter of 2024, we made payments of approximately $12 million USD to TotalEnergies EP Canada Ltd. under this arrangement. These payments are recognized in the "Other" line within the Financing Activities section of our Consolidated Statement of Cash Flows. The fair value of the remaining contingent consideration as of March 31, 2024 is calculated using the income approach and is largely based on the estimated commodity price outlook using a combination of external pricing service companies' and our internal price outlook (unobservable input) and a discount rate consistent with those used by principal market participants (observable input). Impact of other unobservable inputs on the fair value as of March 31, 2024 was not significant.
ConocoPhillips      2024 Q1 10-Q
18

Notes to Consolidated Financial Statements
The following table summarizes the fair value hierarchy for gross financial assets and liabilities (i.e., unadjusted where the right of setoff exists for commodity derivatives accounted for at fair value on a recurring basis):
Millions of Dollars
March 31, 2024December 31, 2023
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets
Investments in debt securities
$248 1,189  1,437 278 1,146  1,424 
Commodity derivatives
338 314 73 725 308 301 115 724 
Total assets
$586 1,503 73 2,162 586 1,447 115 2,148 
Liabilities
Commodity derivatives$371 280 22 673 350 283 14 647 
Contingent consideration  305 305   312 312 
Total liabilities
$371 280 327 978 350 283 326 959 
The range and arithmetic average of the significant unobservable input used in the Level 3 fair value measurement was as follows:
Fair Value
(Millions of
Dollars)
Valuation
Technique
Unobservable
Input
Range
(Arithmetic Average)
Contingent consideration - Surmont as of:
March 31, 2024
$305 Discounted cash flowCommodity price outlook* ($/BOE)
$61.13 - $69.70 ($64.48)
December 31, 2023
312 
$45.48 - $63.04 ($57.45)
*Commodity price outlook based on a combination of external pricing service companies' outlooks and our internal outlook.

The following table summarizes those commodity derivative balances subject to the right of setoff as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of setoff exists.
Millions of Dollars
Amounts Subject to Right of Setoff
Gross
Amounts
Recognized
Amounts Not
Subject to
Right of Setoff
Gross
Amounts
Gross
Amounts
Offset
Net
Amounts
Presented
Cash
Collateral
Net
Amounts
March 31, 2024
Assets$725 41 684 411 273 2 271 
Liabilities673 37 636 411 225 39 186 
December 31, 2023
Assets$724 39 685 375 310 4 306 
Liabilities647 34 613 375 238 47 191 
At March 31, 2024 and December 31, 2023, we did not present any amounts gross on our consolidated balance sheet where we had the right of setoff.

19
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Reported Fair Values of Financial Instruments
We used the following methods and assumptions to estimate the fair value of financial instruments:
Cash and cash equivalents and short-term investments: The carrying amount reported on the balance sheet approximates fair value. For those investments classified as available for sale debt securities, the carrying amount reported on the balance sheet is fair value.
Accounts and notes receivable (including long-term and related parties): The carrying amount reported on the balance sheet approximates fair value.
Investments in debt securities classified as available for sale: The fair value of investments in debt securities categorized as Level 1 in the fair value hierarchy is measured using exchange prices. The fair value of investments in debt securities categorized as Level 2 in the fair value hierarchy is measured using pricing provided by brokers or pricing service companies that are corroborated with market data. See Note 10.
Accounts payable (including related parties) and floating-rate debt: The carrying amount of accounts payable and floating-rate debt reported on the balance sheet approximates fair value.
Fixed-rate debt: The estimated fair value of fixed-rate debt is measured using prices available from a pricing service that is corroborated by market data; therefore, these liabilities are categorized as Level 2 in the fair value hierarchy.
Commercial paper: The carrying amount of our commercial paper instruments approximates fair value and is reported on the balance sheet as short-term debt.
The following table summarizes the net fair value of financial instruments (i.e., adjusted where the right of setoff exists for commodity derivatives):
Millions of Dollars
Carrying Amount
Fair Value
March 31
2024
December 31
2023
March 31
2024
December 31
2023
Financial assets
Commodity derivatives
312 345 312 345 
Investments in debt securities
1,437 1,424 1,437 1,424 
Financial liabilities
Total debt, excluding finance leases
17,339 17,808 17,789 18,621 
Commodity derivatives
223 225 223 225 
ConocoPhillips      2024 Q1 10-Q
20

Notes to Consolidated Financial Statements
Note 12—Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) in the equity section of our consolidated balance sheet includes:

Millions of Dollars

Defined Benefit
Plans
Unrealized Holding Gain/(Loss) on
Securities
Foreign
Currency
Translation
 Unrealized Gain/(Loss) on Hedging Activities
Accumulated
Other
Comprehensive
Income/(Loss)
December 31, 2023$(393)2 (5,344)62 (5,673)
Other comprehensive income (loss)
5 (3)(230)(16)(244)
March 31, 2024$(388)(1)(5,574)46 (5,917)
The following table summarizes reclassifications out of accumulated other comprehensive income (loss) and into net income (loss):

Millions of Dollars

Three Months Ended
March 31

20242023
Defined benefit plans*
$5 11 
*The above amounts are included in the computation of net periodic benefit cost and are presented net of tax expense of $2 million and $3 million for the three-month periods ended March 31, 2024 and March 31, 2023, respectively. See Note 14.

Note 13—Cash Flow Information

Millions of Dollars

Three Months Ended
March 31
20242023
Cash Payments
Interest
$254 209 
Income taxes
707 1,062 
Net Sales (Purchases) of Investments
Short-term investments purchased
$(118)(269)
Short-term investments sold
673 1,513 
Long-term investments purchased
(199)(210)
Long-term investments sold
49 31 

$405 1,065 
21
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Note 14—Employee Benefit Plans
Pension and Postretirement Plans
Millions of Dollars
Pension Benefits
Other Benefits
2024202320242023
U.S.
Int'l.
U.S.
Int'l.
Components of Net Periodic Benefit Cost
Three Months Ended March 31
Service cost
$12 10 13 10   
Interest cost
19 29 19 28 1 1 
Expected return on plan assets
(16)(41)(15)(37)
Amortization of prior service credit
    (9)(9)
Recognized net actuarial loss (gain)
2 14 3 17  (1)
Settlements
  4  
Net periodic benefit cost
$17 12 24 18 (8)(9)
The components of net periodic benefit cost, other than the service cost component, are included in the "Other expenses" line of our consolidated income statement.

Note 15—Related Party Transactions
Our related parties primarily include equity method investments and certain trusts for the benefit of employees.

Millions of Dollars

Three Months Ended
March 31
20242023
Significant Transactions with Equity Affiliates
Operating revenues and other income
$17 21 
Operating expenses and selling, general and administrative expenses
55 78 
ConocoPhillips      2024 Q1 10-Q
22

Notes to Consolidated Financial Statements
Note 16—Sales and Other Operating Revenues
Revenue from Contracts with Customers
The following table provides further disaggregation of our consolidated sales and other operating revenues:

Millions of Dollars

Three Months Ended
March 31

20242023
Revenue from contracts with customers
$12,307 11,964 
Revenue from contracts outside the scope of ASC Topic 606
Physical contracts meeting the definition of a derivative
1,565 3,127 
Financial derivative contracts
(24)(280)
Consolidated sales and other operating revenues
$13,848 14,811 
Revenues from contracts outside the scope of ASC Topic 606 relate primarily to physical gas contracts at market prices, which qualify as derivatives accounted for under ASC Topic 815, “Derivatives and Hedging,” and for which we have not elected NPNS. There is no significant difference in contractual terms or the policy for recognition of revenue from these contracts and those within the scope of ASC Topic 606. The following disaggregation of revenues is provided in conjunction with Note 18—Segment Disclosures and Related Information:

Millions of Dollars
Three Months Ended
March 31
20242023
Revenue from Contracts Outside the Scope of ASC Topic 606 by Segment
Lower 48
$1,259 2,508 
Canada217 567 
Europe, Middle East and North Africa
89 52 
Physical contracts meeting the definition of a derivative
$1,565 3,127 

Millions of Dollars

Three Months Ended
March 31
20242023
Revenue from Contracts Outside the Scope of ASC Topic 606 by Product
Crude oil
$ 47 
Natural gas
1,199 2,725 
Other
366 355 
Physical contracts meeting the definition of a derivative
$1,565 3,127 
Practical Expedients
Typically, our commodity sales contracts are less than 12 months in duration; however, in certain specific cases may extend longer, which may be out to the end of field life. We have long-term commodity sales contracts which use prevailing market prices at the time of delivery, and under these contracts, the market-based variable consideration for each performance obligation (i.e., delivery of commodity) is allocated to each wholly unsatisfied performance obligation within the contract. Accordingly, we have applied the practical expedient allowed in ASC Topic 606 and do not disclose the aggregate amount of the transaction price allocated to performance obligations or when we expect to recognize revenues that are unsatisfied (or partially unsatisfied) as of the end of the reporting period.
23
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Receivables and Contract Liabilities
Receivables from Contracts with Customers
At March 31, 2024, the “Accounts and notes receivable” line on our consolidated balance sheet included trade receivables of $4,415 million compared with $4,414 million at December 31, 2023, and included both contracts with customers within the scope of ASC Topic 606 and those that are outside the scope of ASC Topic 606. We typically receive payment within 30 days or less (depending on the terms of the invoice) once delivery is made. Revenues that are outside the scope of ASC Topic 606 relate primarily to physical gas sales contracts at market prices for which we do not elect NPNS and are therefore accounted for as a derivative under ASC Topic 815. There is little distinction in the nature of the customer or credit quality of trade receivables associated with gas sold under contracts for which NPNS has not been elected compared to trade receivables where NPNS has been elected.
Contract Liabilities from Contracts with Customers
We have entered into certain agreements under which we license our proprietary technology, including the Optimized Cascade® process technology, to customers to maximize the efficiency of LNG plants. These agreements typically provide for milestone payments to be made during and after the construction phases of the LNG plant. The payments are not directly related to our performance obligations under the contract and are recorded as deferred revenue to be recognized when the customer is able to benefit from their right to use the applicable licensed technology. Revenue recognized during the three-month period ended March 31, 2024 was immaterial. No revenue was recognized during the three-month period ended March 31, 2023. We expect to recognize the outstanding contract liabilities of $27 million as of March 31, 2024, as revenue during the years 2026, 2028 and 2029.


Note 17—Earnings Per Share
The following table presents the calculation of net income (loss) available to common shareholders and basic and diluted EPS. For the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive.

Millions of Dollars
(except per share amounts)
Three Months Ended
March 31
20242023
Basic earnings per share
Net Income (Loss)$2,551 2,920
Less: Dividends and undistributed earnings
allocated to participating securities911
Net Income (Loss) available to common shareholders$2,542 2,909
Weighted-average common shares outstanding (in millions)1,1781,220
Net Income (Loss) Per Share of Common Stock$2.16 2.38
Diluted earnings per share
Net Income (Loss) available to common shareholders$2,542 2,909
Weighted-average common shares outstanding (in millions)1,1781,220
Add: Dilutive impact of options and unvested
non-participating RSU/PSUs (in millions)23
Weighted-average diluted shares outstanding (in millions)1,1801,223
Net Income (Loss) Per Share of Common Stock$2.15 2.38
ConocoPhillips      2024 Q1 10-Q
24

Notes to Consolidated Financial Statements
Note 18—Segment Disclosures and Related Information
We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. We manage our operations through six operating segments, which are primarily defined by geographic region: Alaska; Lower 48; Canada; Europe, Middle East and North Africa; Asia Pacific; and Other International.
Corporate and Other represents income and costs not directly associated with an operating segment, such as most interest income and expense; impacts from certain debt transactions; consolidating tax adjustments; corporate overhead and certain technology activities, including licensing revenues; and unrealized holding gains or losses on equity securities. All cash and cash equivalents and short-term investments are included in Corporate and Other.
We evaluate performance and allocate resources based on net income (loss). Intersegment sales are at prices that approximate market.
Analysis of Results by Operating Segment

Millions of Dollars

Three Months Ended
March 31
20242023
Sales and Other Operating Revenues
Alaska
$1,670 1,735 
Lower 48
9,309 10,049 
Intersegment eliminations
(1)(4)
Lower 48
9,308 10,045 
Canada
1,444 1,183 
Intersegment eliminations
(508)(340)
Canada
936 843 
Europe, Middle East and North Africa
1,457 1,702 
Asia Pacific
474 464 
Corporate and Other
3 22 
Consolidated sales and other operating revenues
$13,848 14,811 
Sales and Other Operating Revenues by Geographic Location(1)
U.S.
$10,980 11,802 
Canada
936 843 
China
213 202 
Libya500 370 
Malaysia
261 261 
Norway
624 651 
U.K.
333 681 
Other foreign countries
1 1 
Worldwide consolidated
$13,848 14,811 
Sales and Other Operating Revenues by Product
Crude oil
$9,563 8,904 
Natural gas
1,882 4,412 
Natural gas liquids
680 695 
Other(2)
1,723 800 
Consolidated sales and other operating revenues by product
$13,848 14,811 
(1)Sales and other operating revenues are attributable to countries based on the location of the selling operation.
(2)Includes bitumen and power.
25
ConocoPhillips      2024 Q1 10-Q

Notes to Consolidated Financial Statements
Millions of Dollars
Three Months Ended
March 31
20242023
Net Income (Loss)
Alaska
$346 416 
Lower 48
1,381 1,852 
Canada180 6 
Europe, Middle East and North Africa
304 365 
Asia Pacific
512 522 
Other International
(1)1 
Corporate and Other
(171)(242)
Consolidated net income (loss)
$2,551 2,920 
Millions of Dollars
March 31
2024
December 31
2023
Total Assets
Alaska
$16,701 16,174 
Lower 48
42,586 42,415 
Canada10,028 10,277 
Europe, Middle East and North Africa
8,021 8,396 
Asia Pacific
8,530 8,903 
Corporate and Other
9,482 9,759 
Consolidated total assets
$95,348 95,924 
Note 19—Income Taxes
Our effective tax rate for the three-month periods ended March 31, 2024, and 2023, was 33.0 percent and 36.0 percent, respectively. The change in the effective tax rate for the three-month period ending March 31, 2024 is primarily due to the recognition of a Malaysian tax benefit, described below, and a shift in our mix of income among our tax jurisdictions.

During the first quarter of 2024, we recorded a $76 million tax benefit associated with a deepwater investment tax incentive for Malaysia Blocks J and G.

The Company has ongoing income tax audits in a number of jurisdictions. The government agents in charge of these audits regularly request additional time to complete audits, which we generally grant, and conversely occasionally close audits unpredictably. Within the next twelve months, we may have audit periods close that could significantly impact our total unrecognized tax benefits. The amount of such change is not estimable but could be significant when compared with our total unrecognized tax benefits.

Note 20—New Accounting Standards
In November 2023, the FASB issued ASU No. 2023-07, “Improvements to Reportable Segment Disclosures” which sets forth improvements to the current segment disclosure requirements in accordance with Topic 280 “Segment Reporting.” The amendments do not change how we identify our operating segments. On adoption, the disclosure improvements will be applied retrospectively to prior periods presented. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU.

In December 2023, the FASB issued ASU No. 2023-09, “Improvements to Income Tax Disclosures” which enhances the disclosure requirements within Topic 740 “Income Taxes.” The enhancements will impact our financial statement disclosures only and will be applied prospectively with retrospective application permitted. The ASU is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU.
ConocoPhillips      2024 Q1 10-Q
26

Management’s Discussion and Analysis
Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis is the company’s analysis of its financial performance and of significant trends that may affect future performance. It should be read in conjunction with the financial statements and notes. It contains forward-looking statements including, without limitation, statements relating to the company’s plans, strategies, objectives, expectations and intentions that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The words “ambition," “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would” and similar expressions identify forward-looking statements. The company does not undertake to update, revise or correct any of the forward-looking information unless required to do so under the federal securities laws. Readers are cautioned that such forward-looking statements should be read in conjunction with the company’s disclosures under the heading: “CAUTIONARY STATEMENT FOR THE PURPOSES OF THE ‘SAFE HARBOR’ PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995,” beginning on page 47.
The terms “earnings” and “loss” as used in Management’s Discussion and Analysis refer to net income (loss).
Business Environment and Executive Overview
ConocoPhillips is one of the world’s leading E&P companies based on production and reserves, with operations and activities in 13 countries. Our diverse, low cost of supply portfolio includes resource-rich unconventional plays in North America; conventional assets in North America, Europe, Africa and Asia; global LNG developments; oil sands in Canada; and an inventory of global exploration prospects. Headquartered in Houston, Texas, at March 31, 2024, we employed approximately 10,000 people worldwide and had total assets of $95 billion.

Overview
At ConocoPhillips, we anticipate that commodity prices will continue to be cyclical and volatile, and our view is that a successful business strategy in the E&P industry must be resilient in lower price environments, while also retaining upside during periods of higher prices. As such, we are unhedged, remain committed to our disciplined investment framework and continually monitor market fundamentals, including the impacts associated with geopolitical tensions and conflicts, OPEC Plus supply updates, global demand for our products, oil and gas inventory levels, governmental policies, inflation and supply chain disruptions.
The macro-environment of the global energy industry, including the energy transition, continues to evolve. We believe ConocoPhillips will continue to play an essential role by executing on three objectives: responsibly meeting energy transition pathway demand, delivering competitive returns on and of capital and focusing on achieving our net-zero operational emissions ambition. We call this our Triple Mandate, and it represents our commitment to create long-term value for our stakeholders.

Our Triple Mandate and our foundational principles guide our differential value proposition to deliver competitive returns to stockholders through price cycles. Our foundational principles consist of maintaining balance sheet strength, providing peer-leading distributions, making disciplined investments and demonstrating responsible and reliable ESG performance.

In May, we reconfirmed our 2024 planned return of capital to shareholders of at least $9 billion through our three-tier return of capital framework. We also declared a second quarter ordinary dividend of $0.58 per share and a VROC payment of $0.20 per share.
27
ConocoPhillips      2024 Q1 10-Q

Management’s Discussion and Analysis
Operationally, we remain focused on safely executing the business while also progressing key strategic initiatives. At Willow, project activity continued to ramp up during our first major winter construction season following FID late last year. In the Lower 48, we continued to execute our program, focusing on operating and capital efficiencies. Internationally, after reaching first production in projects in Canada, Norway and China at the end of 2023, we see production growth as those projects continued to ramp up through additional wells online. Also in March 2024, we received a license extension until 2045 on the partner-operated Heidrun field in Norway.

Production was 1,902 MBOED in the first quarter of 2024, an increase of 110 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, first-quarter 2024 production increased by 43 MBOED or two percent from the same period a year ago.

First-quarter 2024 production resulted in $5.0 billion of cash provided by operating activities. We also returned $1.3 billion to shareholders through share repurchases and $0.9 billion through our ordinary dividend and a VROC. We ended the quarter with cash, cash equivalents, restricted cash and short-term investments totaling $6.3 billion and long-term investments in debt securities of $1.1 billion.

Also in the first quarter of 2024, we re-invested $2.9 billion into the business in the form of capital expenditures and investments, with over half of the expenditures related to flexible, short-cycle unconventional plays in the Lower 48 segment, where our production has access to both domestic and export markets.
ConocoPhillips      2024 Q1 10-Q
28

Management’s Discussion and Analysis
Business Environment
Commodity prices are the most significant factor impacting our profitability and related returns on and of capital to our shareholders. Dynamics that could influence world energy markets and commodity prices include, but are not limited to, global economic health, supply or demand disruptions or fears thereof caused by civil unrest, global pandemics, military conflicts, actions taken by OPEC Plus and other major oil producing countries, environmental laws, tax regulations, governmental policies and weather-related disruptions. Our strategy is to create value through price cycles by delivering on the financial, operational and ESG priorities that underpin our value proposition.
Our earnings and operating cash flows generally correlate with price levels for crude oil and natural gas, which are subject to factors external to the company and over which we have no control. The following graph depicts the trend in average benchmark prices for WTI crude oil, Brent crude oil and Henry Hub natural gas:
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Brent crude oil prices averaged $83.24 per barrel in the first quarter of 2024, an increase of 2 percent compared with $81.27 per barrel in the first quarter of 2023. WTI at Cushing crude oil prices averaged $76.96 per barrel in the first quarter of 2024, an increase of 1 percent compared with $76.13 per barrel in the first quarter of 2023. Oil prices in the first quarter of 2024 were supported by global oil demand growth, voluntary production cuts by OPEC Plus members and geopolitical risks impacting trade flows.
Henry Hub natural gas prices averaged $2.25 per MMBTU in the first quarter of 2024, a decrease of 35 percent compared with $3.44 per MMBTU in the first quarter of 2023. Henry Hub prices decreased due to mild winter weather resulting in excess North American natural gas storage levels.
Our realized bitumen price averaged $44.30 per barrel in the first quarter of 2024, an increase of 50 percent compared with $29.49 per barrel in the first quarter of 2023. The increase in the first quarter of 2024 was driven by narrowing WCS differentials as a result of improving heavy oil demand in Asia and a more favorable sales mix with a lower proportion sold by rail. We continue to optimize bitumen price realizations through diluent recovery unit operating improvements as well as blending and transportation strategies.
For the first quarter of 2024, our total average realized price was $56.60 per BOE compared with $60.86 per BOE in the first quarter of 2023.
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ConocoPhillips      2024 Q1 10-Q

Management’s Discussion and Analysis
Key Operating and Financial Summary
Significant items during the first quarter of 2024 and recent announcements included the following:
Delivered total company production of 1,902 MBOED;
Produced 1,046 MBOED in the Lower 48, including 736 MBOED from Permian, 197 MBOED from the Eagle Ford and 96 MBOED from the Bakken;
Executed a successful first major winter construction season at Willow in Alaska and advanced development of LNG projects in the U.S. and Qatar;
Continued ramp-up from recent international project startups including Surmont Pad 267 in Canada, several sub-sea tiebacks in Norway and Bohai Phase 4B in China;
Progressed Montney development program following startup of the second phase of the company's central processing facility in Canada, resulting in record production for the asset;
Achieved 1,000th LNG cargo export milestone at Australia Pacific LNG Pty Ltd. in April;
Distributed $2.2 billion to shareholders through a three-tier framework, including $1.3 billion through share repurchases and $0.9 billion through the ordinary dividend and VROC;
Retired debt of $0.5 billion at maturity; and
Ended the quarter with cash, cash equivalents, restricted cash and short-term investments of $6.3 billion and long-term investments in debt securities of $1.1 billion.

Outlook
Production
Second quarter 2024 production is expected to be 1.91 to 1.95 MMBOED.

All full-year guidance items remain unchanged.
ConocoPhillips      2024 Q1 10-Q
30

Results of Operations
Results of Operations
Unless otherwise indicated, discussion of consolidated results for the three-month period ended March 31, 2024, is based on a comparison with the corresponding period of 2023.
Consolidated Results
A summary of the company's net income (loss) by business segment follows:
Millions of Dollars
Three Months Ended
March 31
20242023
Alaska
$346 416 
Lower 48
1,381 1,852 
Canada
180 
Europe, Middle East and North Africa
304 365 
Asia Pacific
512 522 
Other International
(1)
Corporate and Other
(171)(242)
Net income (loss)
$2,551 2,920 
Net income (loss) in the first quarter of 2024 decreased $369 million. First quarter earnings were negatively impacted by:
Lower realized gas and NGL commodity prices.
Lower commercial performance and timing.
Higher DD&A expenses due to higher rates across our segments and higher volumes primarily in our Canada segment resulting from our acquisition of additional working interest in Surmont, which closed in October 2023. See Note 3.
Higher production and operating expenses primarily driven by higher production volumes associated with our acquisition of additional working interest in Surmont in addition to higher expenses in our Lower 48 and Alaska segments due to higher lease operating expenses and well work activities of approximately $55 million and higher transportation related charges of approximately $44 million. See Note 3.
Lower LNG sales prices, reflected in equity in earnings of affiliates.
Offsets to the earnings decreases include:
Higher sales volumes driven primarily by our Surmont acquisition in our Canada segment. See Note 3.
Higher realized bitumen and crude oil prices.
A tax benefit of $76 million recorded in the first quarter of 2024 associated with deepwater investment tax incentive for Malaysia Blocks J and G. See Note 19.


See the “Segment Results” section for additional information.
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ConocoPhillips      2024 Q1 10-Q

Results of Operations
Income Statement Analysis
Unless otherwise indicated, all results in Income Statement Analysis are before-tax.
Sales and other operating revenues decreased $963 million, primarily due to lower realized natural gas and NGL prices, partially offset by higher sales volumes resulting from our acquisition of additional working interest in Surmont in our Canada segment, which closed in October 2023, and higher realized bitumen and crude prices. See Note 3.

Equity in earnings of affiliates decreased $78 million, due to lower earnings driven by lower LNG prices.
Purchased commodities decreased $804 million, primarily due to lower gas prices partially offset by higher purchased volumes across all commodities.
Production and operating expenses increased $236 million, due to higher production volumes resulting from our acquisition of additional working interest in Surmont in our Canada segment in addition to higher expenses in our Lower 48 and Alaska segments due to higher lease operating expenses and well work activities of approximately $55 million and higher transportation related charges of approximately $44 million. See Note 3.

DD&A expenses increased $269 million, mainly due to higher rates across our segments as well as higher volumes primarily in our Canada segment resulting from the acquisition of additional working interest in Surmont. See Note 3.

See Note 19—Income Taxes for information regarding our Income tax provision (benefit) and effective tax rate.
ConocoPhillips      2024 Q1 10-Q
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Results of Operations
Summary Operating Statistics
Three Months Ended
March 31
20242023
Average Net Production
Crude oil (MBD)
Consolidated operations
928 926 
Equity affiliates
16 11 
Total crude oil
944 937 
Natural gas liquids (MBD)
Consolidated operations
271 264 
Equity affiliates
8