Houston based ConocoPhillips reported lower than expected second quarter earnings before the market opened Thursday dented by softer oil and gas prices. At the same time COP slightly raised its full-year output expectations. Production rose 6% to 1.81mboepd, at the higher end of the company’s prior guidance, with record output in the U.S. Lower 48 states. EPS more than halved to $1.84 per share as the average price for its oil and gas fell 39% to $54.50 per barrel of oil equivalent in the quarter. Analysts had expected earnings of $1.95 per share, according to Refinitiv data.
ConocoPhillips Q2 23 Earnings:
Highlights
- Net income fell to $2.23B, or $1.84/share, from $5.15B, or $3.96/share, in the year-earlier quarter,
- EPS $1.84 per share v expected $1.95 per share, according to Refinitiv data.
- Revenues fell 41% Y/Y to $12.88B, below Wall Street consensus of $14.74B.
- Average price for its oil and gas fell 39% to $54.50 per barrel of oil equivalent in the quarter from $88.57/boe in the prior-year period;
- Production rose 6.7% to a record 1.805Mboed, at the higher end of the company’s prior guidance, with record output in the U.S. Lower 48 states.
- Signed 20-year offtake agreements at the Saguaro LNG export facility on the west coast of Mexico for ~2.2M metric tons/year, subject to Mexico Pacific reaching final investment decision.
Stock Market Reaction
- $116.775 +1.185 (1.03%) Pre-Market
- $116.775 +25.455 (27.87%) Over year
- $116.775 +44.705 (62.03%) Over 5 years
- 52wk High $134.16
- 52wk Low $83.71
Production in the Permian in Q2 2023
Houston based COP is the third largest U.S. based independent exploration and production firm based on production volumes in the Permian basin, the nation’s top shale region, to Pioneer Natural Resources.
- Oil major Chevron (CVX.N) retains the top spot in the basin with a record 772,000-boepd output.
- Pioneer’s 711,000 boepd production
- ConocoPhillips’ 709,000boepd production
Outlook
ConocoPhillips raised its full-year production outlook for a second time this year and now expects it to range between 1.80 million boepd and 1.81 million boepd. (The company in May said it expected production between 1.78 million boepd and 1.80 million boepd.)
ConocoPhillips also narrowed its capital spending guidance range to between $10.8 billion and $11.2 billion, from previous guidance of $10.7 billion to $11.3 billion.
About ConocoPhillips
ConocoPhillips is one of the world’s leading exploration and production companies based on both production and reserves, with a globally diversified asset portfolio. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 13 countries, $95 billion of total assets and approximately 9,400 employees on September 30, 2022. Production averaged 1,731 MBOED for the nine months ended September 30, 2022, and proved reserves were 6.1 BBOE as of Dec. 31, 2021.
Source: ConocoPhillips
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