Exploration and Production (E&P)

Profile: Explores for and produces crude oil, natural gas and natural gas liquids (NGL) on a worldwide basis. Also mines oil sands to upgrade to Syncrude. A key strategy is the development of legacy assets — very large oil and gas developments that can provide strong financial returns over long periods of time — through exploration, exploitation, redevelopments and acquisitions.

Operations: At year-end 2005, E&P held a combined 41.2 million net developed and undeveloped acres in 23 countries and produced hydrocarbons in 13, with proved reserves in three additional countries. Crude oil production in 2005 averaged 907,000 barrels per day (BD), gas production averaged 3.3 billion cubic feet per day, and natural gas liquids production averaged 91,000 BD. Key regional focus areas included the North Slope of Alaska; the Asia Pacific region, including Australia, offshore China and the Timor Sea; Canada; the Caspian Sea; the Middle East; Nigeria; the North Sea; Russia; the Lower 48 United States, including the Gulf of Mexico; and Venezuela.

Refining and Marketing (R&M)

Profile: Refines crude oil, and markets and transports petroleum products. ConocoPhillips is the second-largest refiner in the United States and, of nongovernment-controlled companies, is the sixth-largest refiner in the world.

Operations: Refining — At year-end 2005, R&M owned 12 U.S. refineries, owned or had an interest in five European refineries, and had an interest in one refinery in Malaysia, totaling a combined net crude oil refining capacity of 2.61 million barrels of oil per day.  Marketing — At year-end 2005, gasoline and distillates were sold through approximately 13,600 branded outlets in the United States, Europe and the Asia Pacific region. In the United States, products were marketed primarily under the Phillips 66, Conoco and 76 brands. In Europe and the Asia Pacific region, the company marketed primarily under the JET and ProJET brands. The company also marketed lubricants, commercial fuels, aviation fuels and liquid petroleum gas. ConocoPhillips’ refined products sales were 3.3 million BD in 2005. The company also participated in joint ventures that support the specialty products business. Transportation — R&M owned or had an interest in about 29,000 miles of pipeline systems in the United States at year-end 2005.

LUKOIL Investment

Profile: This segment consists of ConocoPhillips’ investment in the ordinary shares of LUKOIL, an international, integrated oil and gas company headquartered in Russia. ConocoPhillips’ investment was 16.1 percent as of Dec. 31, 2005.

Operations: At year-end 2005, LUKOIL had exploration, production, refining and marketing operations in about 30 countries.

Midstream

Profile: Midstream consists of ConocoPhillips’ 50 percent interest in Duke Energy Field Services, LLC (DEFS), as well as certain ConocoPhillips assets predominantly located in North America.  Midstream gathers natural gas, extracts and sells the NGL, and sells the remaining (residue) gas to electrical utilities, industrial users and gas marketing companies.

Operations: At year-end 2005, DEFS’ gathering and transmission systems included nearly 56,000 miles of pipelines, mainly in six of the major U.S. gas regions. DEFS also owned or operated 54 NGL extraction plants. Raw natural gas throughput averaged 5.9 billion cubic feet per day, and NGL extraction averaged 353,000 BD in 2005. In addition, ConocoPhillips owned or had an interest in four gas processing plants and four NGL fractionators at year-end 2005.

Chemicals

Profile: ConocoPhillips participates in the chemicals sector through its 50 percent ownership of Chevron Phillips Chemical Company LLC (CPChem), a joint venture with Chevron. Major product lines included: olefins and polyolefins, including ethylene, polyethylene, normal alpha olefins and plastic pipe; aromatics and styrenics, including styrene, polystyrene, benzene, cyclohexane, paraxylene and K-Resin® styrene-butadiene copolymer; and specialty chemicals and proprietary plastics.

Operations: At year-end 2005, CPChem’s 11 facilities in the United States were located in Louisiana, Mississippi, Ohio and Texas. The company also had nine polyethylene pipe, conduit and pipe fittings plants in eight states, and a petrochemical complex in Puerto Rico.  Major international facilities were in Belgium, China, Saudi Arabia, Singapore, South Korea and Qatar. CPChem also had a plastic pipe plant in Mexico.