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ConocoPhillips' (COP) Loss Narrower Than Expected in Q3
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ConocoPhillips (COP - Free Report) reported third-quarter 2016 adjusted loss of 66 cents per share, narrower than the Zacks Consensus Estimate of a loss of 69 cents. Increased production from growth projects, along with higher well performances, supported the improvement.
The quarterly loss, however, was wider than the year-ago-quarter adjusted loss of 38 cents. Lower oil and gas price realizations resulted in the year-over-year deterioration.
Revenues of $6,516 million missed the Zacks Consensus Estimate of $ 6,541 million. Moreover, the top line declined from $7,507 million generated in the year-ago quarter.
Exploration and Production
Daily production from continuing operations averaged 1.557 million barrels of oil equivalent (MMBOE) in the quarter as against 1.554 MMBOE in the year-ago quarter. The improvement was driven by increased well performance, lower planned downtime as well as higher output from major growth developments. The positives were partially offset by normal field decline and dispositions.
Price Realization
Average realized price for oil was $43.21 per barrel compared with $46.41 in the year-earlier quarter. Natural gas liquids were sold at $16.18 per barrel as against $15.54 per barrel a year ago. The price of natural gas was $3.05 per thousand cubic feet compared with $3.87 in third-quarter 2015.
Financials
As of Sep 30, 2016, the company had total cash and cash equivalents of $4.1 billion and $28.7 billion in debt, with a debt-to-capitalization ratio of 44%. In the reported quarter, ConocoPhillips generated cash from operating activities of $1.28 billion. The company spent $916 million for capital expenditures and investments and paid dividends of $314 million.
Guidance
ConocoPhillips' fourth-quarter 2016 production guidance is in the range of 1,555-1,595 MBOED. For 2016, ConocoPhillips raised the lower limit of its production guidance to 1,560 MBOED from 1,540 MBOED. Hence, output projection is now expected in the range of 1,560–1,570 MBOED.
Also, the company lowered its 2016 capital expenditures guidance from $5.5 billion to $5.2 billion.
ConocoPhillips currently carries a Zacks Rank #4 (Sell). Some better-ranked players in the energy sector include Ultra Petroleum Corp. , Helix Energy Solutions Group, Inc. (HLX - Free Report) and EQT Midstream Partners, LP .
Ultra Petroleum is likely to witness year-over-year earnings growth of 148.4% for the current year. Ultra Petroleum sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Helix Energy posted an average positive earnings surprise of 56.42% over the last four quarters. The company has a Zacks Rank #2 (Buy).
EQT Midstream is projected to witness year-over-year earnings growth of almost 14% for the current year. The company carries a a Zacks Rank #2.
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ConocoPhillips' (COP) Loss Narrower Than Expected in Q3
ConocoPhillips (COP - Free Report) reported third-quarter 2016 adjusted loss of 66 cents per share, narrower than the Zacks Consensus Estimate of a loss of 69 cents. Increased production from growth projects, along with higher well performances, supported the improvement.
The quarterly loss, however, was wider than the year-ago-quarter adjusted loss of 38 cents. Lower oil and gas price realizations resulted in the year-over-year deterioration.
Revenues of $6,516 million missed the Zacks Consensus Estimate of $ 6,541 million. Moreover, the top line declined from $7,507 million generated in the year-ago quarter.
Exploration and Production
Daily production from continuing operations averaged 1.557 million barrels of oil equivalent (MMBOE) in the quarter as against 1.554 MMBOE in the year-ago quarter. The improvement was driven by increased well performance, lower planned downtime as well as higher output from major growth developments. The positives were partially offset by normal field decline and dispositions.
Price Realization
Average realized price for oil was $43.21 per barrel compared with $46.41 in the year-earlier quarter. Natural gas liquids were sold at $16.18 per barrel as against $15.54 per barrel a year ago. The price of natural gas was $3.05 per thousand cubic feet compared with $3.87 in third-quarter 2015.
Financials
As of Sep 30, 2016, the company had total cash and cash equivalents of $4.1 billion and $28.7 billion in debt, with a debt-to-capitalization ratio of 44%. In the reported quarter, ConocoPhillips generated cash from operating activities of $1.28 billion. The company spent $916 million for capital expenditures and investments and paid dividends of $314 million.
Guidance
ConocoPhillips' fourth-quarter 2016 production guidance is in the range of 1,555-1,595 MBOED. For 2016, ConocoPhillips raised the lower limit of its production guidance to 1,560 MBOED from 1,540 MBOED. Hence, output projection is now expected in the range of 1,560–1,570 MBOED.
Also, the company lowered its 2016 capital expenditures guidance from $5.5 billion to $5.2 billion.
CONOCOPHILLIPS Price, Consensus and EPS Surprise
CONOCOPHILLIPS Price, Consensus and EPS Surprise | CONOCOPHILLIPS Quote
Zacks Rank
ConocoPhillips currently carries a Zacks Rank #4 (Sell). Some better-ranked players in the energy sector include Ultra Petroleum Corp. , Helix Energy Solutions Group, Inc. (HLX - Free Report) and EQT Midstream Partners, LP .
Ultra Petroleum is likely to witness year-over-year earnings growth of 148.4% for the current year. Ultra Petroleum sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Helix Energy posted an average positive earnings surprise of 56.42% over the last four quarters. The company has a Zacks Rank #2 (Buy).
EQT Midstream is projected to witness year-over-year earnings growth of almost 14% for the current year. The company carries a a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>