ConocoPhillips Profit Slides

Tuesday, July 30, 2019

ConocoPhillips missed Wall Street estimates for quarterly profit on Tuesday as it spent more than expected and took a hit from lower crude prices due to fears of a slowing global economy.

The OPEC and Russia have put a lid on production, but that has not translated into higher prices due to surging shale oil output from the United States.

Shares of Conoco fell 2% as the Houston, Texas-based company reported $1.73 billion in capital expenditure during the quarter, above average estimates of $1.53 billion, according to IBES data from Refinitiv.

The company also raised its capital spending for 2019 by $200 million to $6.3 billion, citing more drilling in Alaska and the Eagle Ford shale of Texas.

Raymond James analyst Muhammed Ghulam called the results "mixed" and said the share price movement was in line with recent market reactions to other oil companies raising capital budgets.

Investors have been pressing oil producers to cut spending on expansion and increase returns with share buybacks or dividends. The company said it would increase full-year buyback target by $500 million to $3.5 billion and could spend up to $300 million on acquisitions.

U.S. light crude prices averaged $59.91 per barrel in the second quarter, 11.8% lower than a year earlier, while Brent crude averaged $68.47 per barrel, 8.7% lower than a year earlier.

That led to a drop in realized prices per barrel for the company, which earned $50.50 for each barrel sold in the latest quarter, compared with $54.32 a year earlier.

ConocoPhillips, the world's largest independent oil and gas producer, said production, excluding Libya, rose to 1.29 million barrels of oil equivalent per day (boepd), an increase of 79,000 boepd from a year earlier.

For the full-year, Conoco tightened its production outlook to a range of between 1.31 million boepd and 1.34 million boepd compared with a previous forecast of between 1.30 million boepd and 1.35 million boepd.

Adjusted earnings fell to $1.14 billion, or $1.01 per share, in the second quarter ended June 30 from $1.29 billion, or $1.09 per share, a year earlier.

Analysts on average had expected the company to post a profit of $1.03 per share, according to IBES data from Refinitiv.


(Reporting by Debroop Roy in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)

Categories: Finance Energy Oil Production

Related Stories

CNOOC Puts Into Production New Oil Field in South China Sea

Petrovietnam, Petronas Extend PSC for Offshore Block

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

ONGC and BP Sign Deal to Boost Production at India's Largest Offshore Oil Field

Japan's Mitsui Eyes Alaska LNG Project

European LNG Imports Up with Asian Influx

China's CNOOC Aims for Record Oil and Gas Production in 2025

CNOOC Boosts Dongfang Gas Fields Output with New Platform Coming Online

CNOOC’s South China Sea Oil Field Goes On Stream

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Current News

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com