ConocoPhillips First-Quarter 2012 Interim Update

On April 4, 2012, ConocoPhillips′ [NYSE:COP] board of directors approved
the separation of Phillips 66 from ConocoPhillips. This interim update
is being issued in anticipation of the 'when-issued' trading commencing
on or about April 12, 2012.

This interim update provides an overview of first-quarter market and
operating conditions, as well as an update on other developments and
progress on strategic initiatives for ConocoPhillips in the first
quarter of 2012. The market indicators and company estimates may differ
considerably from the company′s actual results scheduled to be reported
on April 23, 2012.

In addition, Greg Garland, the designated CEO of Phillips 66, will
provide an investor update via webcast on April 9, and Ryan Lance, the
designated CEO of ConocoPhillips, will provide an investor update on
April 16. Investors are encouraged to listen to these webcasts and learn
about the plans for the creation of two leading energy companies.

Exploration and Production (E&P)

The table below provides market price indicators for crude oil and
natural gas. The company′s actual crude oil and natural gas price
realizations are likely to vary from these market indicators due to
quality and location differentials, as well as the effect of pricing
lags.

First-quarter average production is anticipated to be approximately 1.62
million barrels of oil equivalent (BOE) per day. This is consistent with
previous guidance of 1.55 ? 1.60 million BOE per day for the full year,
which could vary depending on the timing of dispositions. Exploration
expenses, excluding special items, are expected to be in line with the
first quarter of 2011.

Bohai Bay

Gross production from the Peng Lai Field in Bohai Bay is currently at
40,000 barrels per day under an approved interim reservoir management
plan. As previously announced, under an agreement with China′s Ministry
of Agriculture (MOA), the company, as operator of the field, paid
approximately $160 million to settle public claims for alleged fishery
damage and to fund settlement of private claims from potentially
affected fishermen in relevant Bohai Bay communities. The company also
paid the MOA approximately $16 million to fund work to improve fishery
resources and for related projects in the area. A revised environmental
impact assessment and overall development program have been submitted to
the appropriate government agencies as part of the process for returning
the field to normal operation. The company is currently engaged in
administrative discussions with the State Oceanic Administration to
resolve outstanding claims.

Mackenzie Delta

ConocoPhillips has been involved with three other energy companies, as
members of the Mackenzie Gas Project, on the development of the
Mackenzie Valley Pipeline and gathering system, which was proposed to
transport onshore gas production from the Mackenzie Delta in northern
Canada to established markets in North America. The company has a 75
percent interest in the Parsons Lake natural gas field, one of the
primary fields in the Mackenzie Delta, which would have anchored the
pipeline development. In the first quarter of 2012, the co-venturers
elected to suspend funding of the project due to a continued decline in
market conditions and the lack of acceptable commercial terms. The
company expects to record a noncash impairment for the carrying value of
the undeveloped leasehold and capitalized project development costs of
approximately $525 million after-tax, during the first quarter of 2012.

Refining and Marketing (R&M)

The table below provides market indicators for regions where the company
has significant refining operations. The Weighted U.S. 3:2:1 margin is
based on the geographical location and capacity of ConocoPhillips′ U.S.
refineries. Realized refining margins are likely to differ due to the
company′s specific locations, configurations, crude oil slates or
operating conditions. ConocoPhillips′ refining configuration yields
somewhat higher distillate and secondary product volumes, and lower
gasoline volumes than those implied by the market indicators shown below.

While the table above reflects that refining market crack spreads were
generally higher than in the first quarter of 2011, R&M′s results for
the first quarter of 2012 are expected to be negatively impacted by
significantly weaker crude differentials and secondary product margins
due to higher crude prices. As is typical in a period of rapidly rising
crude prices, the company also expects marketing margins to be adversely
impacted due to the lag in rack prices. The company′s average worldwide
crude oil refining capacity utilization rate for the first quarter is
anticipated to be in the low-90-percent range. The domestic and
international utilization rates are expected to be in the
high-80-percent range and high-90-percent range, respectively.
First-quarter turnaround costs are anticipated to be approximately $170
million before-tax.

Chemicals and Midstream

Chemicals results are expected to be higher than the first quarter of
2011 primarily due to ethylene margins. Ethylene margins for the quarter
were among the highest experienced in the past 20 years. Utilization
rates continued to exceed 100 percent, allowing capture of these strong
margins. Midstream results are anticipated to be slightly higher than a
year ago mainly due to higher natural gas liquids prices.

3-Year Repositioning Plan

ConocoPhillips continues to execute its asset disposition program,
targeting $10 billion in proceeds during 2012. During the quarter, the
company closed on the sale of its Vietnam business unit and expects to
record an after-tax gain of approximately $940 million. Additional
dispositions are under contract for mature partner-operated assets in
the North Sea and North American conventional natural gas assets. These
are expected to close in the second and third quarters of 2012.

The company expects to reach final investment decision on the second
train of the Australia Pacific LNG Project in the second quarter of
2012. In connection with the resulting dilution of interest,
ConocoPhillips expects to record an after-tax loss of approximately $135
million in the second quarter.

During the first quarter of 2012, Phillips 66 completed the private
placement of $5.8 billion of senior notes, the net proceeds of which
were deposited into escrow accounts pending the separation. As a result,
at March 31, 2012, ConocoPhillips′ total debt is expected to be $5.8
billion higher than at Dec. 31, 2011, with a corresponding $5.8 billion
of restricted cash. Post separation, Phillips 66 will retain this debt,
and ConocoPhillips will use the majority of a special cash distribution
from Phillips 66 to make further debt reductions.

The company anticipates first-quarter 2012 repurchases under the share
repurchase program to be $1.9 billion and the number of weighted-average
diluted shares outstanding during the quarter to be approximately 1,293
million.

As previously announced, the ConocoPhillips board of directors has
approved the planned separation of ConocoPhillips and Phillips 66,
effective from May 1, 2012. Phillips 66 and ConocoPhillips look forward
to sharing additional information about each company and their future
plans at the April 9 and April 16 investor updates, respectively.

ConocoPhillips will release its first-quarter earnings on Monday, April
23 at 8:00 a.m. Eastern time. In addition, a conference call with
members of company management will be held at 11 a.m. Eastern time that
day.

To access the webcast of the call, go to ConocoPhillips′ Investor
Relations site, www.conocophillips.com/investor,
and click on the 'Register for Webcast' link. You should begin this
procedure at least 15-20 minutes prior to the start of the call. For
those who miss the live broadcast, the event will be archived and
available for replay approximately two hours following the live call. To
access the archived call, go to the Investor Relations site and choose
'Replay Webcast.'

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 activities;
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; limited access to capital or significantly higher cost of
capital related to illiquidity or uncertainty in the domestic or
international financial markets; and general domestic and international
economic and political conditions, as well as changes in tax,
environmental 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. The statements
in the interim update are based on activity from operations for the
first two months of the first quarter of 2012 and include estimated
results for March and, as such, are preliminary and are estimates. All
of the forward-looking data is therefore subject to change. Actual
results, which are scheduled to be reported in the company's earnings
release for the first quarter of 2012 on April 23, 2012, may differ
materially from the estimates given in this update.

ConocoPhillips

Aftab Ahmed, 281-293-4138 (media)

aftab.ahmed@conocophillips.com

or

Clayton
Reasor, ?212-207-1996 (investors)

c.c.reasor@conocophillips.com