1) Performance Summary A. High Performance B. Why high performance? i.

On average stock prices, revenue, gross profit, and market share have been increasing over the past three years. ii. Warren Buffett is the largest shareholder of this company, which means it passes the Buffett assessment. iii. Company is highly invested within the communities it operates in. iv. Could improve on attaining more market share of the oil industry. 2) Company Overview/Profile/History A. B. C. D. E. Name: ConocoPhillips HQ Location: Houston, TX (present) First HQ in Bartlesville, OK Date Founded: 1875 as the Continental Oil and Transportation Company Number of Employees: 29,700 Innovations: Water Sustainability $25M and Next Generation Biofuels $22.5M i. Water used in producing crude oil, could be recycled. ii. Using animal fat at farms to produce Ultra-low sulfur diesel. F. Patents: 1,345 patents in 125 countries G. Awards: #1 in the nation for refinery emergency services. H. ConocoPhillipsEnergy for the Future. I. J. Warren Buffett is its largest shareholder i. Due to political instability in other oil providing nations (Middle East, Russia, Africa) investors are more interested in Conoco Phillips. ii. Third largest oil company iii. $20B to be created for shareholders after company splits 3) Industry/Market A. The company is several industries ex. Oil refinery i. Company plans to split in to two: First company will be a refining and marketing and the other ii. Second company will be an Exploration and production of consumer goods ex. Lubricant B. Industry Trends: i. Natural gas is projected to rise by almost 70 percent by 2025

ii. Introduction of electric cars are threatening the oil industry 4) Top Executives A. CEO: James J. Mulva B. CFO: Jeff Sheets C. Senior Vice President: W.C.W Chiang 5) What is a Company Culture? A. Diversity Policy: Yes, and its: Develop our workforce to represent and reflect our global communities in which we live and work through inclusion, thus creating an environment that respects the contributions, ideas, talents and differences of every individual. B. Why culture is important to ConocoPhillips? i. ConnocoPhillips believes that the SPIRT (Safety, People, Integrity, Responsibility, Innovation, and Teamwork) method of business is essential to the company. C. Innovation Policy: Attract, develop and retain the best talent, and enable every individual to make a difference by valuing all ideas and perspectives, providing opportunities for growth and development and expanding their sphere of influence through shared dialogue, learning and understanding. D. ConocoPhillips embraces charities: i. $65 million per year spent on charities, $95 million per year with joint ventures and community investments put together. ii. Charity organizations include: ConocoPhillips Rodeo Run, Rebuilding Together, Special Olympics, MS 150, and Family Ties. E. Safety Policy: i. Number one in the nation for refinery emergency services. ii. We believe that our work is never so urgent or important that we cannot take the time to do it safely and in an environmentally responsible manner. F. Environmental Policy: i. ConocoPhillips is committed to creating and maintaining an operating environment free of substance abuse. ii. ConocoPhillips supports mandatory national framework to address greenhouse gas emissions. 6) Balance Sheet A. Total Assets ($ in millions) i. 2008- $142,865

ii. 2009- $152,588 iii. 2010- $156,314 B. Total Liabilities ($ in millions) i. 2008- $86,600 ii. 2009- $89,531 iii. 2010- $87,205 C. Owners equity ($ in millions) i. 2008- $56,265 ii. 2009- $63,057 iii. 2010- $69,109 7) Company Revenue A. Revenue is the total amount of money received from the sale of goods and services, as well as from related business activities. B. Company Revenue: ($ in millions) i. 2008- $230,764 (%change from 2007 29.2%) ii. 2009- $139,515 (%change from 2007 -39.5%) iii. 2010- $184,966 (%change from 2009 32.6%) C. Primary source of revenue: i. Oil/gas ii. Why?: ConocoPhillips plans to open 150 new refineries in North America. 8) Company Profit A. Company profit, is what the company has left over after taxes and debts paid off. This is important to the company because, they can pay of dividends and expand their operations. B. 2008- ($17B) 2009- $4.86B 2010- $11.36B C. No, customer service and satisfaction should be the number one goal of the company. 9) Cash Balance A. Cash allows a business to grow and expand. ConocoPhillips uses most of its revenue on expanding its share within the industry.

B. Yes, a company could have short term profits, but the long term health of the company could not be as stable or profitable. C. A company could split cash among shareholders, or spend it on new technology. D. Yes you can, If a company is saving money (less liability) then the company is taking a conservatively position. However if a company is spending a lot of cash on new innovations, and company market share then that company is taking an aggressive position. 10) Ratios A. The current ratio is the current assets divided by current liabilities. Changes in a company's current ratio over a period of years can point out problems and successes. A declining current ratio could be pointing to financial problems. An improving ratio could be the result of a brighter financial picture or an overstocked warehouse. B. Current assets for ConocoPhillips: $34.616B Current Liabilities for ConocoPhillips: $27.419B Current Ratio=34.61/27.419 Current Ratio = 1.26 C. Debit to Equity ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. The equation is Total liabilities divided by shareholders equity. D. Total Liabilities for ConocoPhillips: $89.673B Shareholders equity for ConocoPhillips: $69.9713B Debit to Equity ratio=89.673/69.9713 Current Ratio = 1.28 11) Multinational A. A company that operates or produces goods in more than one country. B. Yes; ConocoPhillips operates in more than 40 countries. Some noticeable countries are: Canada, United Kingdom, Marco, Malaysia, Republic of Ireland, and Germany. C. Yes; ConocoPhillips refines oil from several countries, and they also sell products all around the world. D. Canada, Germany, and United Kingdom are locations where ConocoPhillips produces products. 12) Market Capitalization Value A. Market capitalization is the total worth of a company in terms of its shares B. Outstanding Shares: 1.37B C. Market Capitalization: $95.78 billion Shares outstanding*market value of company (1,370,000*$72.14) D. Market Capitalization determines companys net worth within the public.

13) Leadership A. Employee engagement is important because employees are the center of the company. Without a dedicated staff, a company is bound to fail. ConocoPhillips could increase employee engagement by offering more vacation time for the department responsible for most increase in company profits. B. Leadership opportunities are not given through corporate promotions, but hard work and determination. ConccoPhillips could increase leadership trust by allowing employees having some say into who should be promoted. C. Alignment within a company determines how well a company is dedicated towards its short term and long terms goals. One easy way to increase company alignment is by making the mission statement short and easy to read, so that all employees can relate to it. 14) The Buffet Assessment A. Earnings per share for ConocoPhillips have increased in the past three years. On average it has been improving by 77 cents. For the second quarter of ConocoPhillips reported and earnings per share of $2.66. B. Net Profit for 2010 was: $11.4B and Total Debit was: $87.75B which is nearly 8 times more than profits. However Warren Buffett still remains to be largest shareholder of the company. C. Gross Profit for 2010 was: $25.39B and Revenue was: $184,966,000 ConocoPhillips ends up being at 46% D. Warren Buffet is a large owner of ConocoPhillips.

Stock Price Follow up for ConocoPhillips: October 3rd to November 4th

Week 1: Monday October 3rd to Friday October 7th Beginning stock price: $60.99 End of week stock price: $64.16 Increased by: $3.17 (5% increase) Long term reason: ConocoPhillips said, it will close the Pennsylvania refinery if it isnt sold soon. Oil could become scarce in the future, COP needs all its refineries even if its in reserve for a while. Short term reason: Tan Sri Mohd Hassan Marican was elected as a new as a new member of the board, effective December 1, 2011. Mr. Marcian was a board member for a small Malaysian oil company; perhaps legal conflicts could come up soon. Week 2: Monday October 10th to Friday October 14th Beginning stock price: $66.95 End of week stock price: $68.99 Increased by: $2.04 (3% increase) Long term reason: Russia is cutting export tax on oil by 4.6%. Perhaps COP might be interested in investing in Russian oil fields in the future. Short term reason: COP releases official statement on plans to split. This could gather 20B in shares for shareholders. Week 3: Monday October 17th to Friday October 21st Beginning stock price: $68.34 End of week stock price: $71.83 Increased by: $3.49 (5% increase) Long term reason: Gadhafi dies, and the Libyan oil fields are up for grabs. Investing in Libya first could have a major impact on COP. Libyan oil may take 12 months to recover. Short term reason: Syncrude Canada Ltd plans to cut productions, because of global economy slowing. COP may not be able to produce as much oil, because of the slowdown. Week 4: Monday October 24th to Friday October 28th

Beginning stock price: $72.12 End of week stock price: $71.74 Decreased by: -.38 (1% decrease) Long term reason: Many investors over buy COP stocks, as it falls. A stock is considered to be overbought if the RSI reading rises above 70. COP is at 71, and this means that investors think the stock is going up in the long term view. Short term reason: Exxon Mobile reported a 41% increase in profits. As its major competitor Exon is leading the industry with innovative ideas. COP is now behind Exxon as far as being a better buy goes. Week 5: Monday October 31st to Friday November 4th Beginning stock price: $69.65 End of week stock price: $70.71 Increased by: $1.06 (2% increase) Long term reason: COP is ranked as the 4th most potential to grow company in 2012. The price has come down to $69.6, which is a bargain compared to its competitors. Short term reason: EPA penalizes COP for $198,000 for violating EPA laws in Colorado.