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

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Yinson Production Closes $1B Investment to Drive Further Growth

Petronas-Eni Upstream Joint Venture to Take Up to Two Years to Set Up

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

CNOOC Puts Into Production New Oil Field in South China Sea

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Current News

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

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