2021 Fourth Quarter Alaska Earnings Review

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ANCHORAGE, Alaska – In connection with ConocoPhillips’ fourth-quarter 2021 earnings announced earlier today, ConocoPhillips Alaska reported the following 2021 earnings.

ConocoPhillips Alaska reported a net income of $451 million in the fourth quarter of 2021. During this time, ConocoPhillips Alaska incurred an estimated $420 million in taxes and royalties, which includes $326 million to the State of Alaska and $94 million to the federal government.

For the full year of 2021, ConocoPhillips Alaska incurred an estimated $1.4 billion in the form of taxes and royalties which includes $1.1 billion to the State of Alaska and $0.3 billion to the federal government.

Additionally, in the fourth quarter of 2021, ConocoPhillips Alaska invested $284 million in the State of Alaska. For the full year of 2021, ConocoPhillips Alaska invested $982 million on projects in the State of Alaska, which is 18 percent of the corporation’s global capital expenditures and investments.

“Following more fiscal certainty with the defeat of Ballot Measure 1 and the improving market conditions, ConocoPhillips continued with investment in Alaska of nearly $1 billion in capital in 2021,” said Erec Isaacson, president, ConocoPhillips Alaska.

“Our success is Alaska’s success. After many years of investment, we achieved first oil at GMT2 in December 2021, on schedule, at rates in line with expectations, and nearly ten percent under budget. That project, like all our projects, represented significant investment and hundreds of direct jobs. Each dollar we earn from projects like GMT2 allows us to continue our investment in Alaska’s future and keeps Alaskans employed. I’m proud of the work we do on the North Slope and proud of our contributions to Alaska’s economy.”

Since 2007, ConocoPhillips Alaska has paid over $39 billion in taxes and royalties to the State of Alaska and the federal government. Of that amount, about $31 billion went directly to the state. In that same period, ConocoPhillips Alaska’s earnings have been approximately $22 billion.

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ConocoPhillips Alaska has been leading the search for energy in Alaska for more than 50 years. The company is committed to responsibly developing Alaska’s resources, providing economic opportunity for Alaska, operating at the highest safety standards and being good stewards of our communities. For more information, visit www.conocophillipsalaska.com 

Media Contacts Rebecca Boys (Alaska) 907-263-4115 rebecca.a.boys@conocophillips.com

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This new release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events, plans and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and phrases such as “anticipate," “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict," “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, including pandemics (such as COVID-19) and epidemics and any related company or government policies or actions; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; insufficient liquidity or other factors, such as those listed herein, that could impact our ability to repurchase shares and declare and pay dividends such that we suspend our share repurchase program and reduce, suspend, or totally eliminate dividend payments in the future, whether variable or fixed; changes in expected levels of oil and gas reserves or production; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks or unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for our oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of our business; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to liquidate the common stock issued to us by Cenovus Energy Inc. at prices we deem acceptable, or at all; our ability to complete any announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for any announced or any future dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of the transactions or our remaining business; business disruptions during or following the acquisition of assets from Shell (the “Shell Acquisition”) or any other announced or any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related to our transaction with Concho Resources Inc. (Concho); the impact of competition and consolidation in the oil and gas industry; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions; the ability to successfully integrate the assets from the Shell Acquisition or achieve the anticipated benefits from the transaction; the ability to successfully integrate the operations of Concho with our operations and achieve the anticipated benefits from the transaction; unanticipated difficulties or expenditures relating to the Shell Acquisition or the Concho transaction; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from extraordinary weather events, civil unrest, war, terrorism or a cyber attack; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.