ConocoPhillips beats by $0.17
- Reports Q2 (Jun) earnings of $0.14 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of ($0.03).
- Achieved second-quarter production excluding Libya of 1,425 MBOED; 3 percent year-over-year underlying production growth when excluding the impact of closed and signed dispositions. Increasing full-year underlying production, while also lowering capital expenditures guidance.
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Outlook
- Third-quarter 2017 production is expected to be 1,170 to 1,210 MBOED, which excludes Libya and reflects expected impacts from the San Juan, Barnett and Panhandle dispositions. The company's full-year production on the same basis is expected to be 1,340 to 1,370 MBOED.
- Full-year guidance for capital expenditures has been lowered to $4.8 billion.
- Full-year guidance for depreciation, depletion and amortization has been decreased to $7.0 billion, reflecting the impact of asset sales and decreased expense associated with price- and performance-related positive reserve revisions. Corporate segment net expense guidance is $1.3 billion, decreased to $1.0 billion on an adjusted basis, reflecting tax impacts following the announced dispositions and lower interest expense from early debt retirement.
- Production and operating expenses are expected to be $5.0 billion, which results in adjusted operating costs of $5.7 billion, reflecting the impact of asset sales. Dry hole expense guidance is $400 million, which results in adjusted dry hole and leasehold impairment expense of $450 million.
- The company expects to reduce debt to less than $20 billion by year-end 2017, and expects full-year share repurchases of $3 billion with accelerating production growth on a per-share basis.
- "This quarter highlights the significant progress we've made in transforming our company. In just six months we've exceeded the three-year plan we laid out in late 2016. We've reset our portfolio through strategic dispositions that generated substantial proceeds, allowing us to accelerate key financial and operational priorities," said Ryan Lance, chairman and chief executive officer. "We are on track to far surpass our initial debt reduction and shareholder payout targets, while accelerating strong underlying financial and operational performance. We remain focused on lowering our breakeven price for the business, generating free cash flow and delivering strong per-share growth with improving returns through the price cycles. This is the right approach for value creation in the upstream sector, especially at a time of uncertainty in the commodity markets