We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ConocoPhillips (COP) Q3 Earnings Beat on Higher Oil Prices
Read MoreHide Full Article
ConocoPhillips (COP - Free Report) reported third-quarter 2021 adjusted earnings per share of $1.77, comfortably beating the Zacks Consensus Estimate of $1.53. Further, the figure significantly improved from an adjusted loss of 31 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 $11,616 million increased from third-quarter 2020 sales of $4,380 million. Also, the figure beat the Zacks Consensus Estimate of $11,338 million.
The strong third-quarter results were aided by increased production volumes due to the Concho acquisition and rising realized commodity prices. Production from the Lower 48, Canada, Europe and other regions marked an increase.
Total production averaged 1,544 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,067 MBoe/d. Of the total output, 52.8% was crude oil. Overall production was higher than the year-ago period, primarily due to significantly increased output in the Lower 48, Canada and other regions. This was partially offset by decreased production in Alaska and Asia Pacific. The Concho acquisition supported higher production volumes.
ConocoPhillips’ production of crude oil came in at 815 thousand barrels per day (MBbls/d), significantly higher than the year-ago quarter’s 548 MBbls/d. Natural gas output came in at 3,177 million cubic feet per day (MMcf/d), higher than the year-ago level of 2,235 MMcf/d. Also, bitumen production for the quarter was recorded at 69 MBbls/d, higher than the third-quarter 2020 figure of 49 MBbls/d. The company’s production of natural gas liquids totaled 130 MBbls/d, higher than the year-ago period’s 97 MBbls/d.
Realized Prices
Average realized oil equivalent prices rose to $56.92 per barrel from the year-ago level of $30.94.
The average realized crude oil price for the third quarter was $70.43 per barrel, reflecting an increase from the year-ago realization of $39.45. Realized natural gas liquids price was recorded at $34.79 per barrel, higher than the year-ago quarter’s $15.29. Average realized natural gas price for third-quarter 2021 was $5.94 per thousand cubic feet, up from the year-ago period’s $2.70. Average realized bitumen price was recorded at $41.19 per barrel, which also reflects an increase from the year-ago level of $15.87.
Total Expenses
ConocoPhillips’ third-quarter total expenses rose to $8,034 million from $4,892 million in the corresponding period of 2020.
Production and operating expenses rose to $1,389 million for the reported quarter from $963 million a year ago. Similarly, the cost of purchased commodities rose to $4,179 million for the quarter from $1,839 million a year ago. Nonetheless, exploration costs decreased to $65 million for the September quarter of 2021 from $125 million in the comparable period of 2020.
Balance Sheet & Capital Spending
As of Sep 30, 2021, the oil and gas giant had $9,833 million in total cash and cash equivalents, reflecting a jump from the second-quarter level of $6,608 million. The company had a total long-term debt of $18,748 million, down sequentially from $18,805 million. It had a debt-to-capitalization ratio of 0.31. At third quarter-end, the company had short-term debt of $920 million.
Capital expenditures and investments totaled $1,302 million, and dividend payments grossed $579 million. Net cash provided by operating activities was recorded at $4,797 million, up from the year-ago figure of $868 million. It generated free cash flow of $2.8 billion in the third quarter.
Guidance
The company reiterated its full-year production guidance at 1.5 million barrels of oil equivalent per day (MMBoe/d). The figure indicates an improvement from the 2020 level of 1.1 MMBoe/d. Fourth-quarter production will likely be within 1.53-1.57 MMBoe/d.
For the full year, adjusted operating costs will likely be $6.1 billion. The company expects 2021 capital budget of $5.3 billion, indicating an increase from the 2020 level of around $4.7 billion. It has lowered its full-year depreciation, depletion and amortization expense guidance to $7.1 billion from the previous estimate of $7.4 billion.
Zacks Rank & Other Stocks to Consider
The company currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the energy space include Occidental Petroleum Corporation (OXY - Free Report) , HollyFrontier Corporation and PHX Minerals Inc. (PHX - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum’s bottom line for 2021 is expected to rise 141.9% year over year.
HollyFrontier’s bottom line for 2021 is expected to rise 260.9% year over year.
PHX Minerals’ bottom line for the current year is expected to rise 280% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ConocoPhillips (COP) Q3 Earnings Beat on Higher Oil Prices
ConocoPhillips (COP - Free Report) reported third-quarter 2021 adjusted earnings per share of $1.77, comfortably beating the Zacks Consensus Estimate of $1.53. Further, the figure significantly improved from an adjusted loss of 31 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 $11,616 million increased from third-quarter 2020 sales of $4,380 million. Also, the figure beat the Zacks Consensus Estimate of $11,338 million.
The strong third-quarter results were aided by increased production volumes due to the Concho acquisition and rising realized commodity prices. Production from the Lower 48, Canada, Europe and other regions marked an increase.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote
Production
Total production averaged 1,544 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,067 MBoe/d. Of the total output, 52.8% was crude oil. Overall production was higher than the year-ago period, primarily due to significantly increased output in the Lower 48, Canada and other regions. This was partially offset by decreased production in Alaska and Asia Pacific. The Concho acquisition supported higher production volumes.
ConocoPhillips’ production of crude oil came in at 815 thousand barrels per day (MBbls/d), significantly higher than the year-ago quarter’s 548 MBbls/d. Natural gas output came in at 3,177 million cubic feet per day (MMcf/d), higher than the year-ago level of 2,235 MMcf/d. Also, bitumen production for the quarter was recorded at 69 MBbls/d, higher than the third-quarter 2020 figure of 49 MBbls/d. The company’s production of natural gas liquids totaled 130 MBbls/d, higher than the year-ago period’s 97 MBbls/d.
Realized Prices
Average realized oil equivalent prices rose to $56.92 per barrel from the year-ago level of $30.94.
The average realized crude oil price for the third quarter was $70.43 per barrel, reflecting an increase from the year-ago realization of $39.45. Realized natural gas liquids price was recorded at $34.79 per barrel, higher than the year-ago quarter’s $15.29. Average realized natural gas price for third-quarter 2021 was $5.94 per thousand cubic feet, up from the year-ago period’s $2.70. Average realized bitumen price was recorded at $41.19 per barrel, which also reflects an increase from the year-ago level of $15.87.
Total Expenses
ConocoPhillips’ third-quarter total expenses rose to $8,034 million from $4,892 million in the corresponding period of 2020.
Production and operating expenses rose to $1,389 million for the reported quarter from $963 million a year ago. Similarly, the cost of purchased commodities rose to $4,179 million for the quarter from $1,839 million a year ago. Nonetheless, exploration costs decreased to $65 million for the September quarter of 2021 from $125 million in the comparable period of 2020.
Balance Sheet & Capital Spending
As of Sep 30, 2021, the oil and gas giant had $9,833 million in total cash and cash equivalents, reflecting a jump from the second-quarter level of $6,608 million. The company had a total long-term debt of $18,748 million, down sequentially from $18,805 million. It had a debt-to-capitalization ratio of 0.31. At third quarter-end, the company had short-term debt of $920 million.
Capital expenditures and investments totaled $1,302 million, and dividend payments grossed $579 million. Net cash provided by operating activities was recorded at $4,797 million, up from the year-ago figure of $868 million. It generated free cash flow of $2.8 billion in the third quarter.
Guidance
The company reiterated its full-year production guidance at 1.5 million barrels of oil equivalent per day (MMBoe/d). The figure indicates an improvement from the 2020 level of 1.1 MMBoe/d. Fourth-quarter production will likely be within 1.53-1.57 MMBoe/d.
For the full year, adjusted operating costs will likely be $6.1 billion. The company expects 2021 capital budget of $5.3 billion, indicating an increase from the 2020 level of around $4.7 billion. It has lowered its full-year depreciation, depletion and amortization expense guidance to $7.1 billion from the previous estimate of $7.4 billion.
Zacks Rank & Other Stocks to Consider
The company currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the energy space include Occidental Petroleum Corporation (OXY - Free Report) , HollyFrontier Corporation and PHX Minerals Inc. (PHX - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum’s bottom line for 2021 is expected to rise 141.9% year over year.
HollyFrontier’s bottom line for 2021 is expected to rise 260.9% year over year.
PHX Minerals’ bottom line for the current year is expected to rise 280% year over year.