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Thursday, February 4, 2016

ConocoPhillips (COP) reported 4Q earnings on Thur 4 Feb 2016 (b/o)

** charts before earnings **



 




** charts after earnings **


 




ConocoPhillips misses by $0.26; lowers FY16 cap-ex, production (to flat YoY); cuts quarterly dividend 66% to $0.25/share:
  • Reports Q4 (Dec) loss of $0.90 per share, excluding non-recurring items,$0.26 worse than the Capital IQ Consensus of ($0.64). 
    • Production from continuing operations for Q4 was 1,599 thousand barrels of oil equivalent per day (:MBOED), an increase of 32 MBOED YoY, excluding Libya. Growth was primarily due to new production from major projects and development programs, as well as improved well performance, partially offset by normal field decline. The net increase in production reflects 42 MBOED, or 3% growth, after adjusting for 10 MBOED from dispositions and downtime. Total realized price was $28.54 per barrel of oil equivalent (BOE), compared with $52.88 per BOE last year.
  • Guidance for 2016 capital expenditures has been lowered from $7.7 billion to $6.4 billion, primarily driven by reduced activity in the Lower 48. Guidance for 2016 operating costs has been reduced from $7.7 billion to $7.0 billion. 
  • Co has revised its full-year 2016 production guidance to be essentially flat with 2015 production of 1,525 MBOED, which excludes 64 MBOED for the full-year impact of completed dispositions.
  • Q1 production guidance is 1,540 to 1,580 MBOED. The co's 2016 guidance for corporate segment net expense is $1.0 billion; depreciation, depletion and amortization is $8.5 billion; and exploration dry hole and leasehold impairment expense is $0.8 billion. Guidance excludes any special items.
  • Co announced that its board of directors approved a reduction in the co's quarterly dividend to 25 cents per share, compared with the previous quarterly dividend of 74 cents per share.
  • Integrated oil peers: CVXXOMRDS.ATOT; ETFs: XLEXOP.

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