ConocoPhillips beats by $0.09
- Reports Q1 (Mar) loss of $0.95 per share, $0.09 better than the Capital IQ Consensus of ($1.04)
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Production for the first quarter of 2016 was 1,578 thousand barrels of oil equivalent per day (MBOED), a decrease of 32 MBOED compared with the same period a year ago.
- Normal field decline and impacts from dispositions exceeded growth from major projects and development programs, improved well performance, and the impact of lower prices on royalties and production sharing contracts
- When adjusted for 66 MBOED from dispositions and downtime, production increased 34 MBOED, or 2%
- During the quarter, APLNG loaded 11 cargoes from Train 1 in Australia. Lower 48 transitioned from 13 operated rigs at year-end 2015 to three operated rigs in April. Drilling continued at CD5 and Drill Site 2S in Alaska with production continuing to ramp up from both projects. In the Gulf of Mexico, the Melmar exploration well was plugged and abandoned as a dry hole. The exploration and appraisal program continues in Senegal
Outlook:
- The company has reduced its 2016 capital expenditures guidance from $6.4 billion to $5.7 billion, primarily driven by reduced deepwater exploration activity, deferrals and lower costs across the portfolio.
- The company expects to meet its previously stated full-year 2016 production guidance of ~1,525 MBOED, in line with 2015 production adjusted for 64 MBOED for the full-year impact of 2015 dispositions. Second-quarter 2016 production guidance is 1,500 to 1,540 MBOED, which reflects significant planned turnaround activity during the quarter
- Integrated oil peers: CVX, XOM, RDS.A, TOT; ETFs: XLE, XOP.