April 16, 2007 / Houston and Springdale, Ark. /
ConocoPhillips and Tyson Foods Announce Strategic Alliance
To Produce Next Generation
Renewable Diesel Fuel
ConocoPhillips [NYSE:COP] and Tyson Foods, Inc. [NYSE:TSN] will announce a strategic alliance at 12 p.m. CDT today to produce and
market the next generation of renewable diesel fuel, which will help supplement the traditional petroleum-based diesel fuel supply. The
alliance plans to use beef, pork and poultry by-product fat to create a transportation fuel. This fuel will contribute to America’s energy
security and help to address climate change concerns.
Over the last year, the companies have been collaborating on ways to leverage Tyson’s advanced knowledge in protein chemistry and
production with ConocoPhillips’ processing and marketing expertise to introduce a renewable diesel to the United States. Tyson will make
capital improvements this summer in order to begin pre-processing animal fat from some of its North American rendering facilities later in
the year. ConocoPhillips also will begin the necessary capital expenditures to enable it to produce the fuel in several of its refineries. The
finished product will be renewable diesel fuel mixtures that meet all federal standards for ultra-low-sulfur diesel. Production is expected to
ramp up over time to as much as 175 million gallons per year of renewable diesel.
“We are firmly committed to leveraging our leadership position in the food industry to identify and commercialize renewable energy
opportunities,” said Richard L. Bond, Tyson president and chief executive officer. “This strategic alliance is a big win for the entire
agricultural sector because it paves the way for greater participation of fats and oils in renewable fuels.”
“ConocoPhillips believes the key to a secure energy future is the development and efficient use of diverse energy sources,” said Jim Mulva,
ConocoPhillips chairman and chief executive officer. “This alliance will provide a new and significant contribution to our nation’s domestic
renewable fuel supply. It also offers an excellent opportunity to use our company’s manufacturing expertise and advanced technology to
help increase the supply of renewable fuels and to reduce greenhouse gas emissions.”
Using a proprietary thermal depolymerization production technology, the animal fats will be processed with hydrocarbon feedstocks to
produce a high-quality diesel fuel that meets all federal standards for ultra-low-sulfur diesel. The addition of animal fat also improves the
fuel’s ignition properties, while the processing step improves its storage stability and handling characteristics.
Investments made by ConocoPhillips and Tyson will allow for the processing and handling of fat and enhance the ability of the United States
to produce energy from a variety of sources, including domestically-produced vegetable oils.
The processing technology was developed at ConocoPhillips, culminating in a successful test at the company’s Whitegate Refinery in Cork,
Ireland. ConocoPhillips began commercial production of renewable diesel using soybean oil in Ireland late last year.
This alliance is expected to be a positive step for Tyson’s long term financial performance. “Production is expected to begin in late calendar
year 2007, ramping up through spring 2009,” Bond said. “Once at full production, we currently project between $0.04 and $0.16 cents per
share in additional annual earnings. However, this will be driven by factors such as the prices of wholesale diesel and animal fat."
Benefits of Renewable Diesel
•Produces lower life-cycle carbon emissions
•Increases energy security by using a domestic and renewable energy source
•Can be used in today’s vehicles
•Can be produced and distributed with existing refineries and fuel distribution systems
•Refinery quality control systems ensure product quality
ConocoPhillips is an integrated energy company with interests around the world. For more information, go to www.conocophillips.com.
Tyson Foods, Inc. (NYSE:TSN), founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer
of chicken, beef, and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company
produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(tm)" strategy.
Tyson is the recognized market leader in the retail and foodservice markets it serves, providing products and service to customers
throughout the United States and more than 80 countries. The company has approximately 107,000 Team Members employed at more than
300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of
Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team
Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and
environment entrusted to it.
ConocoPhillips and Tyson Foods Inc. will hold a press conference at 12 p.m. CDT. To access the live audio broadcast, go to
www.conocophillips.com or http://ir.tyson.com.
For additional information about the ConocoPhillips-Tyson alliance, go to www.conocophillips.com/et/tyson-cop/ or
Bill Tanner (news media) 281-293-2801
Gary Russell (investors) 212-207-1996
Gary Mickelson (news media) 479-290-6111 or 479-236-9022
Ruth Ann Wisener (investors) 479-290-4235
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 the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are statements that contain projections about revenues, income, earnings and
other financial items, plans and objectives for the future, future economic performance, or other projections or estimates about
assumptions relating to these types of statements. These statements usually relate to future events and anticipated revenues, earnings,
business strategies, competitive position or other aspects of 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. The
forward-looking statements are based on the expectations, estimates and projections of Tyson and ConocoPhillips about their respective
businesses and industries in general on the date this statement was released. These statements are not guarantees of future performance
and involve certain risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking statements are based
on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from
what is expressed or forecast in such forward-looking statements. Economic, business, competitive and regulatory factors that may affect
Tyson’s and ConocoPhillips’ business are generally as set forth in their filings with the Securities and Exchange Commission (SEC). Neither
Tyson or ConocoPhillips are under any obligation (and expressly disclaim any such obligation) to update or alter these forward-looking
statements whether as a result of new information, future events or otherwise.