Assets held for sale, liabilities



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| Notes to Consolidated Financial Statements | [Table of Contents](#if18581573a6045f6b6e889320c9d1887_7) |

Acquisition of Concho Resources Inc. (Concho)In January 2021, we completed our acquisition of Concho, an independent oil and gas exploration and production company in an all-stock transaction. In conjunction with this acquisition, we commenced, and completed in 2021, a company-wide restructuring program, the scope of which included combining the operations of the two companies as well as other global restructuring activities for which we recognized non-recurring restructuring and transaction costs. Further information regarding the Concho acquisition can be found in the following footnotes: [Note](#if18581573a6045f6b6e889320c9d1887_58) 7[—](#if18581573a6045f6b6e889320c9d1887_58)[Changes in Equity](#if18581573a6045f6b6e889320c9d1887_58); [Note](#if18581573a6045f6b6e889320c9d1887_64) 9[—](#if18581573a6045f6b6e889320c9d1887_64)[Contingencies and Commitments](#if18581573a6045f6b6e889320c9d1887_64); [Note](#if18581573a6045f6b6e889320c9d1887_67) 10[—](#if18581573a6045f6b6e889320c9d1887_67)[Derivative and Financial Instruments](#if18581573a6045f6b6e889320c9d1887_67); and [Note](#if18581573a6045f6b6e889320c9d1887_94) 13[—](#if18581573a6045f6b6e889320c9d1887_94)[Cash Flow Information](#if18581573a6045f6b6e889320c9d1887_94) and should be read in conjunction with the notes included in our Annual Report on Form 10-K.   
Acquisition of Additional Shareholding Interest in Australia Pacific LNG Pty Ltd (APLNG)In February 2022, we completed the acquisition of an additional 10 percent interest in APLNG from Origin Energy for approximately $1.4 billion, after customary adjustments, in an all-cash transaction resulting from the exercise of our preemption right. This increases our ownership in APLNG to 47.5 percent, with Origin Energy and Sinopec owning 27.5 percent and 25 percent, respectively. APLNG is reported as an equity investment in our Asia Pacific segment.   
Assets SoldIn April 2022, we sold our interests in certain noncore assets in the Lower 48 segment for net proceeds of $370 million and recognized a $80 million before-tax and $63 million after-tax gain. At the time of disposition, our interests in these assets had a net carrying value of $290 million, consisting primarily of $401 million of PP&E and $111 million of liabilities, primarily related to AROs.  
In March 2022, we completed the divestiture of our subsidiaries that held our Indonesia assets and operations, and based on an effective date of January 1, 2021, we received net proceeds of $731 million after customary adjustments and recognized a $534 million before-tax and $462 million after-tax gain related to this transaction. Together, the subsidiaries sold indirectly held our 54 percent interest in the Indonesia Corridor Block Production Sharing Contract (PSC) and 35 percent shareholding in the Transasia Pipeline Company. At the time of the disposition, the net carrying value was approximately $0.2 billion, excluding $0.2 billion of cash and restricted cash. The net book value consisted primarily of $0.3 billion of PP&E and $0.1 billion of ARO. The before-tax earnings associated with the subsidiaries sold, excluding the gain on disposition noted above, were $138 million and $264 million for the six-month period ended June 30, 2022 and 2021, respectively. Results of operations for the Indonesia interests sold were reported in our Asia Pacific segment.For the three- and six-months ended June 30, 2022, we recorded contingent payments of $174 million and $424 million, respectively, relating to the previous dispositions of our interest in the Foster Creek Christina Lake Partnership and western Canada gas assets as well as our San Juan assets. The contingent payments are recorded as gain on disposition in our consolidated income statement and are reflected within our Canada and Lower 48 segments. For the three- and six-months ended June 30, 2021, we recorded contingent payments of $68 million and $94 million, respectively.  
Planned DispositionsIn July 2022, we entered into agreements to sell our interests in certain noncore assets in the Lower 48 segment for $265 million, before customary adjustments. These transactions are expected to close in the third quarter of 2022. 

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|  | ConocoPhillips      2022 Q2 10-Q | 8 |


