CONOCO NET INCOME $1.64 BLN

CONOCOPHILLIPS - ConocoPhillips (NYSE: COP) reported second-quarter 2018 earnings of $1.6 billion, or $1.39 per share, compared with a second-quarter 2017 loss of $3.4 billion, or ($2.78) per share. Excluding special items, second-quarter 2018 adjusted earnings were $1.3 billion, or $1.09 per share, compared with second-quarter 2017 adjusted earnings of $0.2 billion, or $0.14 per share. Special items for the current quarter were primarily driven by an unrealized gain on Cenovus Energy equity and recognition of deferred licensing revenue, partially offset by pension settlement expense.

Second-Quarter Highlights and Recent Announcements

Cash provided by operating activities was $3.34 billion. Excluding working capital, cash from operations of $3.16 billion exceeded capital expenditures, dividends and share repurchases.

Second-quarter production excluding Libya of 1,211 MBOED achieved the high end of guidance; year-over-year underlying production excluding the impact of closed dispositions grew 5 percent overall and 34 percent on a production per debt-adjusted share basis.

Year-over-year production from the Lower 48 Big 3 unconventional plays grew by 37 percent; achieved Big 3 production milestone of 300 MBOED significantly ahead of schedule.

Paid down $2.1 billion of balance sheet debt and achieved debt target of $15.0 billion 18 months ahead of plan.

Ended the quarter with cash, cash equivalents and restricted cash of $3.5 billion and short-term investments of $0.6 billion, totaling $4.1 billion of ending cash and short-term investments.

Repurchased $0.6 billion of common shares outstanding, bringing year-to-date repurchases to $1.1 billion.

Closed previously announced Alaska bolt-on acquisition on the Western North Slope.

In early July, announced several actions to accelerate the company's disciplined plan and increase its low cost of supply resource base:

Expanded 2018 planned share repurchases by 50 percent to $3 billion and increased the total share repurchase authorization from $6 billion to $15 billion.

Agreed to acquire 39.2 percent interest in the Greater Kuparuk Area in Alaska and sell a subsidiary that will hold a 16.5 percent interest in the UK Clair Field, subject to regulatory approval.

Announced positive results from the 2018 six-well exploration and appraisal drilling program in Alaska.

"We've positioned ConocoPhillips to deliver top-tier performance through cycles by focusing on free cash flow generation and following clear priorities to maximize returns," said Ryan Lance, chairman and chief executive officer. "We're benefitting from higher oil prices, but also driving underlying cash flow expansion. In accordance with our priorities, we've differentially allocated excess cash toward debt reduction and distributions, while continuing to grow our diversified, low cost of supply resource base. Since we launched our disciplined strategy almost two years ago, we've met or exceeded all our key strategic milestones. We achieved our debt target 18 months ahead of plan, we've outperformed on our target payout to shareholders, we're executing our operating plan and remain committed to our disciplined approach to the business."

Second-Quarter Review

Production excluding Libya for the second quarter of 2018 was 1,211 thousand barrels of oil equivalent per day (MBOED), a decrease of 214 MBOED compared with the same period a year ago. The second-quarter volume impact from closed dispositions was 272 MBOED in 2017. Excluding the impact of closed dispositions, underlying production increased 58 MBOED, or 5 percent. The increase came primarily from growth in the Big 3 unconventional assets and other major projects, which more than offset normal field decline. Production from Libya was 38 MBOED.

In the Lower 48, production from the company's Big 3 unconventional assets grew 37 percent year-over-year. In Alaska, GMT-1 drilling continued, and the project is on track to deliver first oil in the fourth quarter of 2018. In addition, the company recently announced the results of its 2018 exploration and appraisal program in Alaska. In the Greater Willow Area, results to date are sufficient to justify developing the area with a stand-alone hub. In Canada, the company is continuing to implement its alternative diluent program at Surmont and progressing its 14-well pad in the Montney. In Europe, Aasta Hansteen and Clair Ridge are both on track to deliver first production by the end of the year. Turnarounds were safely and successfully executed at Darwin LNG and Bayu Undan in Australia, as well as in the United Kingdom and Norway. Additional turnarounds and maintenance activity will continue in the third quarter.

Earnings were higher compared with the second quarter of 2017 primarily due to the absence of non-cash impairments of APLNG, San Juan and Barnett, and current-quarter higher realized prices, partially offset by the absence of the gain on the Canada disposition. Adjusted earnings were improved compared with second-quarter 2017 primarily due to higher realized prices. The company's total realized price was $54.32 per barrel of oil equivalent (BOE), compared with $36.08 per BOE in the second quarter of 2017, reflecting stronger marker prices and a more liquids-weighted portfolio.

For the quarter, cash provided by operating activities was $3.34 billion. Excluding a $0.18 billion change in working capital, ConocoPhillips generated $3.16 billion in cash from operations, exceeding $2.0 billion in capital expenditures and investments, $0.6 billion of repurchased shares and $0.3 billion of dividends. In addition, the company paid $2.1 billion to reduce debt and purchased $0.3 billion of short-term investments. The $2.0 billion in capital expenditures and investments included $0.4 billion for the Alaska Western North Slope bolt-on acquisition that closed in the second quarter.

Six-Month Review

ConocoPhillips' six-month 2018 earnings were $2.5 billion, or $2.13 per share, compared with a six-month 2017 loss of $2.9 billion, or ($2.30) per share. Six-month 2018 adjusted earnings were $2.4 billion, or $2.05 per share, compared with six-month 2017 adjusted earnings of $1 million, or $0.00 per share.

Production excluding Libya for the first six months of 2018 was 1,216 MBOED, compared with 1,503 MBOED for the same period in 2017. The six-month volume impact from closed dispositions was 337 MBOED in 2017. Excluding the impact from closed dispositions, underlying production increased 50 MBOED, or 4 percent. The increase was largely driven by new production from major projects, development programs and improved well performance, more than offsetting normal field decline.

The company's total realized price during this period was $52.37 per BOE, compared with $36.13 per BOE in the first six months of 2017. This reflected stronger marker prices and a more liquids-weighted portfolio.

In the first half of 2018, cash provided by operating activities was $5.74 billion. Excluding a $0.09 billion change in working capital, ConocoPhillips generated $5.65 billion in cash from operations, exceeding $3.5 billion in capital expenditures and investments, $1.1 billion of repurchased shares and $0.7 billion of dividends. In addition, the company paid $5.0 billion to reduce debt and sold $1.3 billion of short-term investments. The $3.5 billion in capital expenditures and investments included $0.4 billion for the Alaska Western North Slope bolt-on acquisition and $0.1 billion to acquire additional acreage in the Montney in Canada.

Outlook

The company increased full-year 2018 production guidance to 1,225 to 1,255 MBOED to reflect the higher-than-budgeted partner-operated activity, improved performance across several operating areas and completion of the Alaska Western North Slope bolt-on acquisition. Third-quarter 2018 production is expected to be 1,215 to 1,255 MBOED, which reflects typical seasonal turnarounds and maintenance activity. All production guidance excludes Libya.

The company's 2018 operated capital scope remains unchanged, excluding acquisition-related activity. However, the company is adjusting its capital guidance to $6 billion from $5.5 billion, reflecting a higher $65 WTI per barrel price environment versus the $50 WTI per barrel initially assumed. This guidance excludes the previously announced $0.4 billion bolt-on acquisition in the Alaska Western North Slope and $0.1 billion to acquire additional acreage in the Montney in Canada.

Based on higher expected production, the company has increased its full-year guidance for depreciation, depletion and amortization expense to $5.9 billion from $5.8 billion.

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Earlier: 

2018, February, 2, 12:01:00 CONOCO NET LOSS $855 MLN CONOCOPHILLIPS - ConocoPhillips (NYSE: COP) today reported fourth-quarter 2017 earnings of $1.6 billion, or $1.32 per share, compared with a fourth-quarter 2016 net loss of $35 million, or ($0.03) per share. Excluding special items, fourth-quarter 2017 adjusted earnings were $0.5 billion, or $0.45 per share, compared with a fourth-quarter 2016 adjusted net loss of $0.3 billion, or ($0.26) per share. Special items for the current quarter were primarily driven by benefits from U.S. tax reform and the settlement of Ecuador arbitration.

2017, October, 27, 19:15:00 CONOCO LOSS $2.4 BLN ConocoPhillips’ nine-month 2017 earnings were a loss of $2.4 billion, or ($1.98) per share, compared with a nine-month 2016 loss of $3.6 billion, or ($2.88) per share. Nine-month 2017 adjusted earnings were $0.2 billion, or $0.16 per share, compared with a nine-month 2016 adjusted loss of $3.0 billion, or ($2.40) per share.

2017, May, 6, 16:40:00 CONOCO NET INCOME $586 MLN ConocoPhillips (NYSE: COP) reported first-quarter 2017 earnings of $0.8 billion, or $0.62 per share, compared with a first-quarter 2016 loss of $1.5 billion, or ($1.18) per share. Excluding special items, first-quarter 2017 adjusted earnings were a loss of $19 million, or ($0.02) per share, compared with a first-quarter 2016 adjusted loss of $1.2 billion, or ($0.95) per share. Special items for the current quarter were primarily driven by a financial tax accounting benefit related to the previously announced Canadian disposition, partially offset by a non-cash impairment in Alaska.

2017, March, 30, 18:30:00 CONOCO SELLS FOR $13.3 BLN ConocoPhillips (COP.N) on Wednesday agreed to sell oil sands and western Canadian natural gas assets to Cenovus Energy Inc (CVE.TO) for C$17.7 billion ($13.3 billion), making it the latest international oil major to pull back from a region where high costs and low crude prices have made it hard for large companies to make an acceptable return.

2017, February, 3, 18:35:00 CONOCO NET LOSS $3.6 BLN Full-year 2016 earnings were a net loss of $3.6 billion, or ($2.91) per share, compared with a full-year 2015 net loss of $4.4 billion, or ($3.58) per share. Excluding special items, full-year 2016 adjusted earnings were a net loss of $3.3 billion, or ($2.66) per share, compared with a full-year 2015 adjusted net loss of $1.7 billion, or ($1.40) per share.

2016, November, 14, 18:35:00 CONOCO PLANS $50 ConocoPhillips plans conservative financial and operating programs in 2017, planning for a longer-than-expected $50/b oil world by reducing its capital budget 4%, growing production up to 2% and forging technologies to squeeze out the last smidgen of resource from existing assets.

2016, November, 11, 18:35:00 CONOCO DIVESTS AMERICA ConocoPhillips has set its 2017 capital expenditures guidance at $5 billion, down 4% compared with its 2016 guidance of $5.2 billion and less than half of its 2015 capex and investments that totaled $10.1 billion. The firm recently cut its 2016 capex from $5.5 million.