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ConocoPhillips (COP) Beats on Q4 Earnings, Ups '21 Budget
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ConocoPhillips (COP - Free Report) reported fourth-quarter 2020 adjusted loss per share of 19 cents, narrower than the Zacks Consensus Estimate by a penny. The company recorded adjusted earnings of 76 cents per share a year ago.
Based in Houston, TX, one of the world’s largest independent oil and gas producers, ConocoPhillips’ quarterly revenues of $6,049 million declined from fourth-quarter 2019 sales of $8,140 million. However, the figure beat the Zacks Consensus Estimate of $5,245 million.
The better-than-expected fourth-quarter results stemmed from increased output in Canada. Moreover, overall bitumen production rose from the year-ago period. Additionally, production and operating expenses declined for the quarter. The positives were partially offset by lower realized commodity prices and total production volumes.
The company ended 2020 with proved reserves of around 4.5 billion barrels of oil equivalent (BOE) and a reserve replacement ratio of 86%. Through 2020, the upstream energy player produced 1,127 thousand BOE per day, comprising more than 50.4% oil.
Overall Production Falls
Total production averaged 1,169 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 1,334 MBoe/d. Of the total output, 50.9% was crude oil. Overall production was lower than the year-ago period, primarily due to decreased output in Lower 48, Alaska and other regions. This was partially offset by increased production in Canada.
ConocoPhillips’ production of crude oil came in at 595 thousand barrels per day (MBD), lower than the year-ago quarter’s 695 MBD. Moreover, the company’s production of natural gas liquids totaled 106 MBD, lower than the year-ago period’s 118 MBD. Also, natural gas output came in at 2,394 million cubic feet per day (MMcf/d), lower than the year-ago level of 2,741 MMcf/d. However, bitumen production for the quarter was recorded at 69 MBD, higher than the fourth-quarter 2019 figure of 64 MBD.
Realized Prices Decline
Markedly, average realized oil equivalent prices fell to $33.21 per barrel from the year-ago level of $47.01.
The average realized crude oil price for the fourth quarter was $40.89 per barrel, reflecting a decline from the year-ago realization of $60.17. Realized natural gas liquids price was recorded at $17.98 per barrel, lower than the year-ago quarter’s $19.67. Average realized natural gas price for fourth-quarter 2020 was $3.23 per thousand cubic feet, down from the year-ago period’s $4.62. Moreover, average realized bitumen price was recorded at $19.41 per barrel, lower than year-ago figure of $24.58.
Total Expenses Rise
ConocoPhillips’ fourth-quarter total expenses rose to $7,135 million from $6,854 million in the corresponding period of 2019. Exploration costs jumped to $1,047 million for fourth-quarter 2020 from $151 million in the comparable period of 2019. However, production and operating expenses fell to $1,161 million for the reported quarter from $1,302 million a year ago.
Balance Sheet & Capital Spending
As of Dec 31, 2020, the oil giant had $2,991 million in total cash and cash equivalents, up from the third-quarter level of $2,490 million. The company had a total long-term debt of $14,750 million, down sequentially from $14,905 million. It had a debt-to-capitalization ratio of 0.34. At fourth quarter-end, the company had a short-term debt of $619 million.
Capital expenditures and investments totaled $1,058 million, and dividend payments grossed $464 million. Net cash provided by operating activities was recorded at $1,672 million, down from the year-ago figure of $2,982 million.
Outlook
The Concho acquisition is expected to bring about an interesting era for ConocoPhillips. A detailed outlook for 2021 of the combined entity will likely be announced in March. A glimpse has already been provided by the company, with its 2021 capital budget being set at $5.5 billion, higher than the 2020 level of around $4.7 billion. The total amount incorporates $5.1 billion that will be used to sustain the current production level and $400 million for growth project investments. The projects are primarily located in Alaska. Notably, 2021 production will likely be 1.5 million Boe/d.
Cactus’ bottom-line estimates for 2021 have increased nearly 14% in the past 60 days.
Suncor’s sales for 2021 are expected to increase 16.5% year over year.
Ameresco’s bottom line for 2021 is expected to increase 19.6% year over year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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ConocoPhillips (COP) Beats on Q4 Earnings, Ups '21 Budget
ConocoPhillips (COP - Free Report) reported fourth-quarter 2020 adjusted loss per share of 19 cents, narrower than the Zacks Consensus Estimate by a penny. The company recorded adjusted earnings of 76 cents per share a year ago.
Based in Houston, TX, one of the world’s largest independent oil and gas producers, ConocoPhillips’ quarterly revenues of $6,049 million declined from fourth-quarter 2019 sales of $8,140 million. However, the figure beat the Zacks Consensus Estimate of $5,245 million.
The better-than-expected fourth-quarter results stemmed from increased output in Canada. Moreover, overall bitumen production rose from the year-ago period. Additionally, production and operating expenses declined for the quarter. The positives were partially offset by lower realized commodity prices and total production volumes.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote
Proved Reserves
The company ended 2020 with proved reserves of around 4.5 billion barrels of oil equivalent (BOE) and a reserve replacement ratio of 86%. Through 2020, the upstream energy player produced 1,127 thousand BOE per day, comprising more than 50.4% oil.
Overall Production Falls
Total production averaged 1,169 thousand barrels of oil equivalent per day (MBoe/d), down from the year-ago quarter’s 1,334 MBoe/d. Of the total output, 50.9% was crude oil. Overall production was lower than the year-ago period, primarily due to decreased output in Lower 48, Alaska and other regions. This was partially offset by increased production in Canada.
ConocoPhillips’ production of crude oil came in at 595 thousand barrels per day (MBD), lower than the year-ago quarter’s 695 MBD. Moreover, the company’s production of natural gas liquids totaled 106 MBD, lower than the year-ago period’s 118 MBD. Also, natural gas output came in at 2,394 million cubic feet per day (MMcf/d), lower than the year-ago level of 2,741 MMcf/d. However, bitumen production for the quarter was recorded at 69 MBD, higher than the fourth-quarter 2019 figure of 64 MBD.
Realized Prices Decline
Markedly, average realized oil equivalent prices fell to $33.21 per barrel from the year-ago level of $47.01.
The average realized crude oil price for the fourth quarter was $40.89 per barrel, reflecting a decline from the year-ago realization of $60.17. Realized natural gas liquids price was recorded at $17.98 per barrel, lower than the year-ago quarter’s $19.67. Average realized natural gas price for fourth-quarter 2020 was $3.23 per thousand cubic feet, down from the year-ago period’s $4.62. Moreover, average realized bitumen price was recorded at $19.41 per barrel, lower than year-ago figure of $24.58.
Total Expenses Rise
ConocoPhillips’ fourth-quarter total expenses rose to $7,135 million from $6,854 million in the corresponding period of 2019. Exploration costs jumped to $1,047 million for fourth-quarter 2020 from $151 million in the comparable period of 2019. However, production and operating expenses fell to $1,161 million for the reported quarter from $1,302 million a year ago.
Balance Sheet & Capital Spending
As of Dec 31, 2020, the oil giant had $2,991 million in total cash and cash equivalents, up from the third-quarter level of $2,490 million. The company had a total long-term debt of $14,750 million, down sequentially from $14,905 million. It had a debt-to-capitalization ratio of 0.34. At fourth quarter-end, the company had a short-term debt of $619 million.
Capital expenditures and investments totaled $1,058 million, and dividend payments grossed $464 million. Net cash provided by operating activities was recorded at $1,672 million, down from the year-ago figure of $2,982 million.
Outlook
The Concho acquisition is expected to bring about an interesting era for ConocoPhillips. A detailed outlook for 2021 of the combined entity will likely be announced in March. A glimpse has already been provided by the company, with its 2021 capital budget being set at $5.5 billion, higher than the 2020 level of around $4.7 billion. The total amount incorporates $5.1 billion that will be used to sustain the current production level and $400 million for growth project investments. The projects are primarily located in Alaska. Notably, 2021 production will likely be 1.5 million Boe/d.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Cactus, Inc. (WHD - Free Report) , Suncor Energy Inc. (SU - Free Report) and Ameresco, Inc. (AMRC - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus’ bottom-line estimates for 2021 have increased nearly 14% in the past 60 days.
Suncor’s sales for 2021 are expected to increase 16.5% year over year.
Ameresco’s bottom line for 2021 is expected to increase 19.6% year over year.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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