Exploration and Production (E&P)
Profile: E&P explores for, produces, transports and markets crude oil, natural gas and natural gas liquids (NGL) worldwide. Key focus areas include developing legacy assets – large producing projects that can provide strong financial returns over long periods of time – and exploring for new reserves in promising areas. E&P also extracts bitumen from oil sands deposits in Canada and upgrades it into synthetic crude oil.
Operations: At year-end 2007, E&P held a combined 68.5 million net developed and undeveloped acres in 23 countries and produced hydrocarbons in 16, with proved reserves in three additional countries. Crude oil production in 2007 averaged 854,000 barrels per day (BD), natural gas production averaged 5.09 billion cubic feet per day (BCFD), and NGL production averaged 155,000 BD.

Refining and Marketing (R&M)
Profile: R&M refines crude oil and other feedstocks into petroleum products and markets and transports them. Based on crude oil capacity, ConocoPhillips is the world’s fifth-largest refiner and
the second-largest U.S. refiner.
Operations: R&M has operations in the United States, Europe and the Asia Pacific region. Refining – At year-end 2007, R&M owned or had interests in 12 U.S. refineries, with an aggregate crude oil processing capacity of 2,037,000 BD. It also owned or had interests in five refineries outside the United States, with an aggregate crude oil processing capacity of 669,000 net BD. Marketing – At year-end 2007, the group sold gasoline, distillates and aviation fuel through approximately 10,500 outlets in the United States and Europe. In the United States, products were marketed primarily under the Phillips 66®, Conoco® and 76® brands and in Europe primarily under the JET® brand. The group also sold and marketed lubricants, commercial fuels and liquid petroleum gas. Additionally, the company participated in the specialty products business directly and through joint ventures. Refined products sales totaled 3.2 million BD in 2007. Transportation – At year-end 2007, the company held interests in approximately 28,000 miles of U.S. pipeline systems, including those partially owned or operated by affiliates.

LUKOIL Investment

Profile: ConocoPhillips has 20 percent ownership in LUKOIL, an international, integrated oil and natural gas company headquartered in Russia.

Operations: At year-end 2007, LUKOIL had exploration, production, refining and marketing operations in about 30 countries. During 2007, ConocoPhillips’ estimated share of LUKOIL’s production was 444,000 barrels of oil equivalent per day and refining crude oil throughput was 214,000 BD.

Midstream
Profile: ConocoPhillips’ Midstream segment consists of a 50 percent interest in DCP Midstream, LLC and certain ConocoPhillips assets located predominantly in North America. Midstream gathers natural gas, processes it to extract NGL, and sells the remaining residue gas to electrical utilities, industrial users and marketing companies.
Operations: At year-end 2007, DCP Midstream had approximately 58,000 miles of pipelines and owned or operated 53 extraction plants and 10 fractionation plants. Its raw natural gas throughput averaged 5.9 BCFD, and NGL extraction averaged 363,000 BD.

Chemicals
Profile: ConocoPhillips has 50 percent ownership of Chevron Phillips Chemical Company LLC (CPChem), a joint venture with Chevron Corporation. The company produces olefins and polyolefins, including ethylene, polyethylene and other olefin products; aromatics and styrenics, including styrene, benzene, cyclohexane and paraxylene; and specialty products, including chemicals, catalysts and high-performance polymers and compounds.
Operations: At year-end 2007, CPChem had 11 U.S. facilities; nine polyethylene pipe, conduit and pipe fittings plants; and a petrochemical complex in Puerto Rico. Major international production facilities were in Belgium, China, Saudi Arabia, Singapore, South Korea and Qatar.

Emerging Businesses
Profile: Emerging Businesses develops new businesses and technology complementary to traditional operations. These include power generation, which develops integrated projects to support E&P and R&M strategies and business objectives; carbons-to-liquids, a process that converts carbon into a wide range of transportable products; technology solutions, which develops upstream and downstream technologies and services; and alternative energy and programs, which involve heavy oils, biofuels and alternative energy sources designed to provide future growth options.
Operations: In 2007, the company formed an alliance to collaborate on developing renewable transportation fuels from biomass such as crops, wood or switchgrass. It also entered into an agreement to explore developing a commercial-scale coal-to-substitute-natural-gas (SNG) facility using proprietary ConocoPhillips E-Gas™ technology. In late 2007, the company also began processing tallow at its Borger, Texas, refinery to make renewable diesel fuel.