ConocoPhillips Pursuing Plan to Separate Into Two Stand-Alone, Publicly Traded Companies

Consistent with ConocoPhillips′ previously stated strategies and focus
on value creation for its shareholders, ConocoPhillips′ board of
directors has approved pursuing the separation of the company′s Refining
& Marketing and Exploration & Production businesses into two
stand-alone, publicly traded corporations via a tax-free spin of the
refining and marketing business to ConocoPhillips shareholders.

Following the completion of the proposed separation, ConocoPhillips will
be a large and geographically diverse pure-play exploration and
production company with strong returns and investment opportunities. The
company′s strategy of enhancing returns on capital through developing
new resources, growing reserves and production per share, continuing the
asset sale program and increasing shareholder distributions will not
change.

As a separate company, the Refining and Marketing business of
ConocoPhillips will be a leading pure-play independent refiner with a
competitive and diverse set of assets. In addition to executing the
company′s initiatives to improve downstream returns through portfolio
rationalization and other operating efficiencies, the new downstream
company will be able to further position its portfolio by pursuing
transactions and investments across the value chain. Under the
contemplated plan, both companies will be well positioned with financial
strength and flexibility and experienced management teams committed to
continued value creation.

'Consistent with our strategy to create industry-leading shareholder
value, we have concluded that two independent companies focused on their
respective industries will be better positioned to pursue their
individually focused business strategies,? said Jim Mulva, chairman and
chief executive officer. 'Both companies will continue to benefit from
the size and scale of their significant high-quality asset bases and
free cash flow generation, allowing them to invest and create
shareholder value in a changing environment.?

The separation of the companies is expected to be completed in the first
half of 2012. Upon completion of the separation, Mulva intends to
retire. Until that point, he will continue to serve as ConocoPhillips′
CEO and lead the separation efforts. The work to determine the detailed
allocation of assets and liabilities, the management and governance of
the companies, and the mechanics of completing the separation will begin
immediately. Further details will be disclosed as they are determined
over the next several months.

The contemplated separation of ConocoPhillips into two companies does
not require a shareholder vote. The separation is subject to market
conditions, customary regulatory approvals, the receipt of an
affirmative IRS ruling, the execution of separation and intercompany
agreements, and final board approval.

ConocoPhillips will hold a conference call and webcast at 8:30 a.m. EDT
on July 14. Interested parties can get information regarding the
conference call and webcast on the ConocoPhillips Investor Relations
website, www.conocophillips.com\investor.
Replays of the conference call and a transcript should be available
later today.

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.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE 'SAFE HARBOR' PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended, which
are intended to be covered by the safe harbors created thereby.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as 'anticipate,'
'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,'
'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,'
'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'effort,'
'target' and other similar words. 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 have a reasonable basis. However, there can
be no assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected by a
variety of risks and other matters including, but not limited to, crude
oil and natural gas prices; refining and marketing margins; potential
failure to achieve, and potential delays in achieving expected reserves
or production levels from existing and future oil and gas development
projects due to operating hazards, drilling risks, and the inherent
uncertainties in interpreting engineering data relating to underground
accumulations of oil and gas; unsuccessful exploratory drilling
activities; lack of exploration success; potential disruption or
unexpected technical difficulties in developing new products and
manufacturing processes; potential failure of new products to achieve
acceptance in the market; unexpected cost increases or technical
difficulties in constructing or modifying company manufacturing or
refining facilities; unexpected difficulties in manufacturing,
transporting or refining synthetic crude oil; international monetary
conditions and exchange controls; potential liability for remedial
actions under existing or future environmental regulations; potential
liability resulting from pending or future litigation; general domestic
and international economic and political conditions, as well as changes
in tax and other laws applicable to our business. Other factors that
could cause actual results to differ materially from those described in
the forward-looking statements include other economic, business,
competitive and/or regulatory factors affecting our business generally
as set forth in our filings with the Securities and Exchange Commission
(SEC). Unless legally required, ConocoPhillips undertakes no obligation
to update publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.

ConocoPhillips

John Roper, 281-293-2073 (media)

john.roper@conocophillips.com

Clayton
Reasor, 212-207-1996 (investors)

c.c.reasor@conocophillips.com