ConocoPhillips Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by ConocoPhillips on November 29, 2004. The report addresses a change in financial disclosure practices regarding oil and gas producing activities.
Key Financial Metrics
The filing does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The report focuses exclusively on a methodological change in reporting a non-GAAP metric.
Material Changes
ConocoPhillips has discontinued the reporting of its "finding and development cost-per-barrel" metric in SEC filings. Previously, this metric was calculated by dividing net reserve changes (excluding production and sales) by costs incurred under Statement of Financial Accounting Standards No. 69. Management determined that this metric was discontinued because:
- Timing differences between reserve additions and related costs often resulted in including reserves where development costs were not yet incurred.
- The metric included development costs for reserves added in earlier years.
- The metric did not necessarily represent total finding and development costs for ongoing projects or indicate expected future costs.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, outlook, or discussion of new risks or contingencies. The change is presented as a correction to ensure reported metrics are more indicative of actual project costs and future expectations.
Key Facts for Investor Verification
- ConocoPhillips has ceased reporting the "finding and development cost-per-barrel" metric.
- Historical comparisons of this specific metric with future periods will no longer be available in SEC filings.
- Investors should rely on other disclosed costs and reserve data under SFAS No. 69 for analysis.