HOUSTON -- ConocoPhillips has reported fourth-quarter net income of $3.197 billion, or $1.91 per share, which includes a 17-cents-per-share reduction due to previously disclosed impairments. This compares with $3.679 billion, or $2.61 per share, for the same quarter in 2005. Revenues were $41.5 billion, versus $51.3 billion a year ago.
We continued to experience operational challenges in our upstream business during the quarter, said Jim Mulva, chairman and CEO. In our downstream business, the crude oil capacity utilization rate was 94% during the quarter, [image-nocss] but we were impacted by significantly lower margins.
Fourth-quarter net income was negatively impacted by two previously disclosed impairments. Refining & Marketing (R&M) results were impacted by an after-tax impairment of $192 million related to certain domestic marketing assets held for sale. Exploration & Production (E&P) results included an after-tax asset impairment of $93 million.
We ended the year with debt of $27.1 billion and a debt-to-capital ratio of 24%, said Mulva. During the quarter, we generated $5.6 billion in cash from operations, funded $4.2 billion for our capital program, reduced debt by $700 million, paid $600 million in dividends, and repurchased $250 million of outstanding ConocoPhillips common stock. For the year, we funded $16.3 billion for our capital program, reduced debt by $5.1 billionpaid $2.3 billion in dividends and repurchased $925 million of outstanding ConocoPhillips common stock. This was accomplished using $21.5 billion in cash from operations, $550 million in proceeds from asset sales and other available cash.
Our asset rationalization efforts generated proceeds of approximately [$550 million] in 2006 and a further $1 billion this month. The balance of our rationalization efforts remains on target, Mulva said.
For the 12 months of 2006, net income was $15.55 billion, or $9.66 per share, versus $13.529 billion, or $9.55 per share, for 2005. Revenues were $183.7 billion, versus $179.4 billion a year ago.
Fourth-quarter E&P net income was $2.087 billion, up from $1.904 billion in third-quarter 2006 and down from $2.426 billion in fourth-quarter 2005. For 12-month E&P, net income for 2006 was $9.848 billion, up from $8.43 billion in 2005.
Midstream fourth-quarter net income was $89 million, down from $169 million in the previous quarter and $147 million from fourth-quarter 2005. For 12-month Midstream, net income for 2006 decreased to $476 million, from $688 million in 2005.
Fourth-quarter R&M net income was $919 million, down from $1.464 billion in the previous quarter and $973 million from fourth-quarter 2005. The decrease from third-quarter 2006 primarily was due to lower worldwide refining and marketing margins, partially offset by $57 million in lower impairments on assets held for sale. In addition, third-quarter results included a $111 million benefit related to business interruption insurance. The decrease from fourth-quarter 2005 primarily was due to lower worldwide refining and domestic marketing margins and the fourth-quarter 2006 impairment, partially offset by higher domestic refining volumes reflecting fourth-quarter 2005 hurricane impacts, lower utility costs and a lower effective tax rate in fourth-quarter 2006.
The domestic refining crude oil capacity utilization rate for the fourth quarter remained at 96%.
For 12-month R&M, net income during 2006 was $4.481 billion, compared with $4.173 billion in 2005. The increase was due to higher domestic refining and marketing margins and domestic refining volumes, the business interruption insurance benefit, and other factors. The increase was partially offset by $441 million after-tax in impairments on assets held for sale recognized in the third and fourth quarters of 2006, and higher depreciation expense.
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