Our Theme:

Opportunity — A high-quality portfolio of existing assets, promising major projects under development worldwide, and investment in numerous new emerging businesses ensures an opportunity-rich future for ConocoPhillips. Renewable diesel fuel represents one such opportunity. Garry Bush (featured in the top photo) works with a team at the company’s Bartlesville, Okla., research facility to further the production and marketing of renewable fuels in the United States. The company’s renewable diesel fuel technology is already in use in Europe.

Performance — Strong, reliable operating performance, delivered in a safe and environmentally responsible manner, is paramount to ConocoPhillips’ success. In 2006, the company improved global crude oil and natural gas production, added reserves, increased crude oil refining capacity and advanced its major projects while completing a number of significant transactions on schedule. The acquisition of Burlington Resources (featured in the middle photo), made ConocoPhillips one of the largest natural gas producers in North America.

Value — ConocoPhillips is committed to delivering a strong total return to shareholders, a measure that reached 26.5 percent in 2006 and was well above the industry average. The company is determined to remain competitive through strong, reliable operating performance, a well-executed investment plan, continued capital and cost discipline, ongoing annual dividend increases, and a robust share repurchase program. Margaree Everage (featured in the bottom photo), an operator at Wood River refinery in Roxana, Ill., represents the 38,400 employees working worldwide to consistently deliver top performance and value to shareholders.

Who We Are

ConocoPhillips is an international, integrated energy company. It is the third-largest integrated energy company in the United States, based on market capitalization, and oil and natural gas proved reserves and production; and the second-largest refiner in the United States. Worldwide, of non-government-controlled companies, ConocoPhillips is the sixth-largest proved reserves holder and the fifth-largest refiner.

ConocoPhillips is known worldwide for its technological expertise in exploration and production, reservoir management and exploitation, 3-D seismic technology, high-grade petroleum coke upgrading and sulfur removal.

Headquartered in Houston, Texas, ConocoPhillips operates in more than 40 countries. The company has 38,400 employees worldwide and assets of $165 billion. ConocoPhillips’ stock is listed on the New York Stock Exchange under the symbol “COP.”

Our Businesses

The company has four core activities worldwide:

• Petroleum exploration and production.

• Petroleum refining, marketing, supply and transportation.

• Natural gas gathering, processing and marketing,

   including a 50 percent interest in DCP Midstream, LLC.

• Chemicals and plastics production and distribution

   through a 50 percent interest in Chevron Phillips

   Chemical Company LLC.

In addition, the company is investing in several emerging businesses — power generation; carbon-to-liquids; technology solutions such as sulfur removal; and alternative energy and programs, involving heavy oils, biofuels and alternative energy sources — that provide current and future growth opportunities.