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

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

CNOOC Starts Production at Two New Oil and Gas Projects

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

Kazakhstan Looks to Improve Oil Production Agreements Terms

BP Targets 44% Oil, 89% Gas Increase from India’s Mumbai High Field

BP to Help Boost Oil and Gas Output at India’s Largest Producing Field

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Driven by Oil & Gas, Norway Wealth Fund Approachs $2 Trillion

OPEC+ Passes on Oil Output Increase, Weighs the "Trump Effect"

Current News

VARD Snags $125m Shipbuilding Deal for Subsea Contruction Vessel

Mitsui’s STATS Lands Malaysian Pipeline Isolation Job

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

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