www.conocophillips.com ConocoPhillips is an international, integrated energy company with interests around the world. Headquartered in Houston, the company had operations in more than 35 countries, approximately 29,800 employees, $153 billion of assets and Growing Value $245 billion of revenues as of Dec. 31, 2011. 2011 SUMMARY ANNUAL REPORT 90414conD1R1.indd 1 2/28/12 11:05 PM Shareholder Information 1 Letter to Shareholders Certain disclosures in this Summary Annual Annual Meeting Information Requests Copies of Form 10-K, Proxy Statement 49 Report may be considered “forward-looking” and Summary Annual Report 5 Financial and Operating Highlights ConocoPhillips’ annual meeting of For information about dividends and statements. These are made pursuant to “safe stockholders will be held: certificates, or to request a change of Copies of the Annual Report on Form 10-K 6 Repositioning harbor” provisions of the Private Securities address form, shareholders may contact: and the Proxy Statement, as filed with the Litigation Reform Act of 1995. The “Cautionary Wednesday, May 9, 2012 U.S. Securities and Exchange Commission, Statement” in Management’s Discussion and Omni Houston Hotel Westside Computershare are available free by making a request on Our Commitments Analysis in Appendix A of ConocoPhillips’ 2012 13210 Katy Freeway, Houston, Texas P.O. Box 358015 the company’s website, calling 918-661- Proxy Statement should be read in conjunction Pittsburgh, PA 15252-8015 8 Enhancing Financial Performance Notice of the meeting and proxy materials 3700 or writing: with such statements. Toll-free number: 800-356-0066 are being sent to all shareholders. 10 Empowering Our People Outside the U.S.: 201-680-6578 ConocoPhillips – 2011 Form 10-K TDD for hearing impaired: 800-231-5469 B-41 Adams Building 12 Operating Responsibly “ConocoPhillips,” “the company,” “we,” “us” Direct Stock Purchase and Dividend and “our” are used interchangeably in this report TDD outside the U.S.: 201-680-6610 411 South Keeler Ave. 14 Advancing Technology Reinvestment Plan to refer to the businesses of ConocoPhillips and www.bnymellon.com/shareowner/ Bartlesville, OK 74004 ConocoPhillips’ Investor Services Program equityaccess its consolidated subsidiaries. Additional copies of this Summary Annual is a direct stock purchase and dividend Operational Review Personnel in the following offices also can Report may be obtained by calling 918-661- reinvestment plan that offers shareholders Definition of resources: ConocoPhillips uses answer investors’ questions about the 3700 or writing: 16 Exploration and Production a convenient way to buy additional shares the term “resources” in this document. The company: and reinvest their common stock dividends. ConocoPhillips 26 Refining and Marketing company estimates its total resources based Purchases of company stock through direct 2011 Summary Annual Report on a system developed by the Society of Institutional Investors: 32 Midstream and Chemicals cash payment are commission-free. Please B-41 Adams Building Petroleum Engineers that classifies recoverable call the BNY Mellon Shareowner Services ConocoPhillips Investor Relations 411 South Keeler Ave. hydrocarbons into six categories based on their Material Fulfillment Center to request an 375 Park Avenue, Suite 3702 Bartlesville, OK 74004 36 Financial Summary status at the time of reporting. Three (proved, enrollment package: New York, NY 10152 probable and possible reserves) are deemed 212-207-1996 Internet Website: 46 Board of Directors Toll-free number: 866-353-7849 commercial, and three others are deemed [email protected] www.conocophillips.com 48 Company Officers noncommercial or contingent. The company’s You may also enroll online at www. The site includes resources of interest resource estimate encompasses volumes Individual Investors: 49 Shareholder Information bnymellon.com/shareowner/equityaccess. associated with all six categories. to investors, including news releases Registered shareholders can access ConocoPhillips Shareholder Relations and presentations to securities analysts; important investor communications online 600 N. Dairy Ashford, ML3074 copies of ConocoPhillips’ annual reports and sign up to receive future shareholder Houston, TX 77079 and proxy statements; reports to the U.S. materials electronically by going to www. 281-293-6800 Securities and Exchange Commission; bnymellon.com/shareowner/equityaccess and [email protected] and data on ConocoPhillips’ health, safety following the enrollment instructions. and environmental performance. Other Compliance and Ethics websites with information on topics Principal and Registered Offices included in this summary annual report For guidance, or to express concerns or include: 600 N. Dairy Ashford ask questions about compliance and ethics www.cpchem.com Houston, TX 77079 issues, call ConocoPhillips’ Ethics Helpline www.dcpmidstream.com 2711 Centerville Road toll-free: 877-327-2272, available 24 hours Wilmington, DE 19808 a day, seven days a week. The ethics office also may be contacted via email at ethics@ Stock Transfer Agent and Registrar conocophillips.com, the Internet at http:// conocophillips.ethicspoint.com or by writing: Computershare 480 Washington Blvd. Attn: Corporate Ethics Office Jersey City, NJ 07310-1900 ConocoPhillips www.bnymellon.com/shareowner/ 600 N. Dairy Ashford, ML3170 equityaccess Houston, TX 77079 90414conD1R1.indd 2 2/22/12 7:21 PM Letter to Shareholders ConocoPhillips is progressing 1 through a three-year strategic plan to reposition the company. We are focused on optimizing our portfolio, enhancing returns, strengthening our financial flexibility and increasing shareholder distributions. These actions began in 2010 and will extend through 2012. Consistent with this plan, we are implementing a spinoff of our downstream businesses into a new company, Phillips 66, with ConocoPhillips becoming an independent exploration and production company. Both will be leaders in their respective industries. In 2011, we increased our quarterly dividend rate by 20 percent, repurchased $11.1 billion of our shares, reduced debt by $1 billion and generated $4.8 billion from divestments that included the remainder of our LUKOIL holdings. Our strategic initiatives were accompanied by financial and operational success during 2011. We operated well and captured market opportunities, resulting in a 38 percent increase in adjusted earnings to $12.2 billion. This improvement came despite the absence of $1.3 billion of equity earnings from LUKOIL, approximately $2 billion in higher taxes and 8 percent lower production volumes. Adjusted earnings per share of $8.76 benefited from our James J. Mulva significant share repurchases and were Chairman, President and 48 percent higher than in 2010. Chief Executive Officer 90414conD2R1.indd 1 2/22/12 7:28 PM Letter to Shareholders “ ConocoPhillips is progressing through a three-year strategic plan to reposition the company. We are focused on optimizing our portfolio, enhancing returns, strengthening our financial flexibility and increasing shareholder distributions.” 2 Quarterly Dividends We delivered these results in a global During 2011, we expanded our ongoing (Cents per share) market still recovering from the recent asset divestiture program to target 1 5 financial crisis. While liquids prices salesEPROCE of $15 billion to $20 billion from 50 55 66 increased during 2011,4.9 North8.8 American12.2 2010 through 2012, including1 $5 billion5 to13 80 15 natural gas prices remained impacted by $1015 billion in sales planned in 2012. We 70 weak demand and rising supply. Surplus are well positioned to meet our three-year 12 12 60 global refining capacity continues to limit divestment target. refining margins. Given these constraints, 50 9 9 we continued investing in projects that Returns Enhancement 40 will create long-term shareholder value. We continue to improve our capital 6 6 1 30 5 For example, we directed more than efficiency through focused investment 50 55 66 4.9 8.8 12.2 EPROCE 1 5 13 20 80 15 70 percent of 2011 operating cash flow in the15 highest-returning opportunities in 3 3 10 into our capital program, an aggressive our asset portfolio. These include higher- 70 12 reinvestment rate relative to our peers that margin12 North American upstream liquids 0 0 0 60 reflects our strategy of pursuing organic development projects as we shift our 2009 2010 2011 2009 2010 2011 2009 2010 2011 50 9 growth. We are targeting high-return investments9 away from conventional 40 upstream opportunities, spending natural gas while retaining the ability to 31 25 26 3.28 5.92 8.76 6 $12.7 billion, or 91 percent, of our 2011 increase6 such investments when market 2 30 6 40 10 capital program in our Exploration and conditions improve. 20 35 3 Production (E&P) business. This is an 3 10 8 30 increase of $3.4 billion over the prior year, Our E&P business continues performing 0 0 and spending is planned to grow to strongly0 in key areas, positioning the 25 Debt-to-Capital Ratio 6 2009 2010 2011 $14 billion in 2012. We2009 are limiting2010 2011 company for ongoing success.2009 We2010 acquired2011 (Percent) 20 investments in North American natural more than 500,000 acres in strategic, 4 15 gas production, which represented liquids-rich North American shale trends, 31 25 26 3.28 5.92 8.76 2 10 6 26 percent of 2011 production. and added to our positions in the deepwater 40 10 2 Gulf of Mexico and several frontier 5 35 8 Portfolio Optimization exploration