ConocoPhillips Reports First-Quarter Earnings of $3.0 Billion or $2.09 Per Share

ConocoPhillips (NYSE:COP) today reported first-quarter earnings of $3.0
billion, compared with first-quarter 2010 earnings of $2.1 billion.
Excluding gains from asset dispositions, first-quarter 2011 adjusted
earnings were $2.6 billion, or $1.82 per share.

'While our financial results were much improved from a year ago, E&P
production and R&M capacity utilization did not meet our targets,? said
Jim Mulva, chairman and chief executive officer. 'The quarter was
negatively impacted by approximately $200 million from unplanned
downtime and from variable compensation expense related to prior-year
performance.?

Exploration and Production′s (E&P) first-quarter 2011 adjusted earnings
were higher, compared with the same period in 2010, primarily due to
higher prices, partially offset by lower volumes and higher taxes.

Production for the first quarter of 2011 was 1.7 million barrels of oil
equivalent (BOE) per day, a decrease of about 125,000 BOE per day versus
the same period in 2010. Field decline, primarily in the North Sea,
Lower 48, China and Alaska, decreased production by approximately
190,000 BOE per day, which was largely offset by about 180,000 BOE per
day of new production and improved well performance. The new production
was primarily from the company's Qatargas 3 project, Bohai Bay′s
development optimization program and the liquids-rich shale plays in the
Lower 48. Unplanned E&P downtime, primarily from the temporary shutdown
of the Trans Alaska Pipeline System in January, a supply vessel
collision with the company′s Britannia platform and civil unrest in
Libya, adversely impacted production by about 65,000 BOE per day. Asset
dispositions in 2010 and the first quarter of 2011 also negatively
impacted year-over-year production by approximately 50,000 BOE per day.

The unplanned E&P downtime of approximately 65,000 BOE per day reduced
earnings for the quarter by about $100 million.

'Consistent with our strategy, we continue to build our Exploration
portfolio of high-impact drillable prospects and expand our positions in
world-class shale opportunities,? added Mulva.

During the quarter, significant exploration activities included the
acquisition of two Norwegian blocks in the Barents Sea, the spudding of
the Peking Duck wildcat well in the North Sea and the acquisition of
33,000 net acres in the emerging Wolfcamp shale play in North America.
In the Lower 48 shale plays of Eagle Ford, North Barnett and Bakken,
exploration and development continues with 20 operated rigs currently
drilling. Results from these programs continue to meet or exceed
expectations.

'While we had significant improvement in earnings from our downstream
business, we did not capture all the market opportunities available to
us due to downtime at several refineries,? said Mulva.

Refining & Marketing′s (R&M) first-quarter 2011 earnings were higher
than the corresponding period of 2010, primarily due to improved global
refining margins. Improved market crack spreads were partially offset by
weaker crude differentials and lower secondary product margins. The U.S.
refining crude oil capacity utilization rate was 87 percent and the
international rate was 96 percent in the quarter.

'For the quarter, earnings would have been about $50 million higher if
we had operated our U.S. downstream at planned levels,? said Mulva.

During the quarter, R&M′s working capital increased $2.0 billion,
adversely impacting cash from operations. The increase was primarily
related to management of the company's discretionary inventory position.
An earnings benefit of about $50 million was recognized this quarter
related to trading around these inventory positions. Later this year,
ConocoPhillips expects to recognize an additional $50 million of
earnings from inventory positions taken in the first quarter of 2011.

The Chemicals segment posted record earnings of $193 million in the
first quarter. The strong earnings were due to higher margins, mostly in
olefins and polyolefins, as well as lower costs. The Midstream segment′s
results for the first quarter of 2011 were in line with the first
quarter of 2010.

Corporate expenses for the quarter of $304 million after-tax were
improved slightly compared with the first quarter of 2010. Although
interest expense decreased due to reduced debt levels, higher
benefit-related expenses and taxes nearly offset the improvement.

Controllable costs were flat for the quarter compared with a year ago.
However, variable compensation expense related to prior-year performance
negatively impacted earnings for the quarter by approximately $50
million after-tax.

The company completed the sale of its OAO LUKOIL shares in the first
quarter. In addition, ConocoPhillips repurchased 21 million of its own
shares for $1.6 billion and increased the quarterly dividend rate by 20
percent to 66 cents per share.

Also during the quarter, the company announced plans to sell an
additional $5 billion to $10 billion of noncore assets over the next two
years. Proceeds from the increased asset sales are expected to be used
primarily to fund the company′s recently announced $10 billion share
repurchase program and for capital investment opportunities.

'We remain focused on delivering value through improving returns,
increasing shareholder distributions and growing production and reserves
per share,? said Mulva.

First-Quarter Financial Highlights

For the first quarter of 2011, ConocoPhillips reported earnings of $3.0
billion, or $2.09 per share, compared with earnings of $2.1 billion, or
$1.40 per share, for the same period in 2010. First-quarter 2011
earnings included $394 million in gains from North American asset sales
and LUKOIL share dispositions.

First-quarter 2011 adjusted earnings were $2.6 billion, or $1.82 per
share, compared with adjusted earnings of $2.2 billion, or $1.47 per
share, for the same period in 2010. Adjusted earnings for the quarter
increased versus the prior year, primarily due to the impact of higher
commodity prices and global refining margins. This increase was
partially offset by lower production volumes, the absence of equity
earnings from LUKOIL and higher taxes.

During the first quarter of 2011, ConocoPhillips generated $4.0 billion
in cash from operations excluding working capital increases of $2.1
billion, resulting in cash from operations of $1.9 billion. In addition,
the company received $1.8 billion in proceeds from asset dispositions.
These proceeds plus available cash were used to fund a $3.1 billion
capital program, repurchase $1.6 billion of ConocoPhillips common stock,
pay $0.9 billion in dividends and reduce debt by $0.4 billion. At March
31, 2011, the company′s cash and short-term investments were $8.4
billion, including cash and cash equivalents of $6.2 billion. The
company ended the quarter with debt of $23.2 billion and a
debt-to-capital ratio of 25 percent.

ConocoPhillips will host a conference call at 11 a.m. Eastern time today
to discuss its quarterly results and provide a status update on
operational and strategic plans. To listen to the conference call and
view related presentation materials, go to www.conocophillips.com
and click on the 'Investor Information? link. For detailed supplemental
information, go to www.conocophillips.com/EN/investor/financial_reports/earnings_reports/Pages/index.aspx.

ConocoPhillips is an integrated energy company with interests around the
world. Headquartered in Houston, the company had approximately 29,600
employees, $160 billion of assets, and $226 billion of annualized
revenues as of March 31, 2011. For more information, go to www.conocophillips.com.

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THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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and potential delays in achieving, expected reserves or production
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well as changes in tax, environmental and other laws applicable to our
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materially from those described in the forward-looking statements
include other economic, business, competitive and/or regulatory factors
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required, ConocoPhillips undertakes no obligation to update publicly any
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future events or otherwise.

Use of Non-GAAP Financial Information -- This press release
includes the terms adjusted earnings and adjusted earnings per share.These are non-GAAP financial measures.Adjusted earnings and
adjusted earnings per share are included to help facilitate comparisons
of company operating performance across periods.

References in the release to earnings refer to net income
attributable to ConocoPhillips.Controllable costs include
production and operating expenses; selling, general and administrative
expenses; and exploration expenses excluding dry hole costs and
leasehold impairments.

ConocoPhillips

Nancy Turner, 281-293-1430 (media)

nancy.e.turner@conocophillips.com

or

Clayton
Reasor, 212-207-1996 (investors)

c.c.reasor@conocophillips.com