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ConocoPhillips (COP) Lags on Q2 Earnings, Ups '23 Output View
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ConocoPhillips (COP - Free Report) reported second-quarter 2023 adjusted earnings per share of $1.84, missing the Zacks Consensus Estimate of $1.94. The bottom line declined from the prior-year quarter’s $3.91 per share.
One of the world’s leading independent oil and gas producers headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $12,884 million decreased from the second-quarter 2022 figure of $21,989 million. The top line also missed the Zacks Consensus Estimate of $14,644 million.
Lower average realized oil equivalent prices have led to weak quarterly results. Increasing production and operating expenses also affected the company’s second-quarter performance.
ConocoPhillips has announced a quarterly ordinary dividend of 51 cents per share, unchanged from the last paid dividend. The dividend is payable on Sept 1, 2023, to stockholders of record at the close of business on Aug 16, 2023. Additionally, COP announced a variable return of cash payment of 60 cents per share.
ConocoPhillips reiterated its 2023 planned return of capital to shareholders of $11 billion.
Production
Total production averaged 1,805 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,692 MBoe/d. The metric also beat our estimate of 1,791 MBoe/d. Of the total output, 51.6% was crude oil. Overall production was higher than the year-ago period primarily due to the increased production in the Lower 48.
ConocoPhillips’ crude oil production increased to 931 thousand barrels per day (MBbls/d) from the year-ago quarter’s 871 MBbls/d and also beat our estimate of 914.3 MBbls/d.
Production of natural gas liquids totaled 283 MBbls/d, higher than the year-ago period’s 244 MBbls/d. The metric is above our projection of 263.7 MBbls/d.
Bitumen production for the quarter was 66 MBbls/d, up from 59 MBbls/d reported in the year-ago quarter. Also, the company’s natural gas production was 3,147 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,107 MMcf/d.
Realized Prices
Average realized oil equivalent prices declined to $54.50 per barrel from the year-ago level of $88.57.
The average realized crude oil price for the second quarter was $74.19 per barrel, reflecting a decrease from the year-ago figure of $111.50. The metric is slightly above our projection of $71.17.
The average realized natural gas price was $5.04 per thousand cubic feet, down from $10.15 reported in the year-ago quarter. Realized natural gas liquids price declined to $20.72 per barrel from the year-ago quarter’s $43.26 and is also below our projection of $23.90.
Total Expenses
ConocoPhillips’ second-quarter total expenses declined to $9,522 million from $14,334 million in the corresponding period of 2022. The metric is also below our projection of $11,214 million. The cost of purchased commodities fell to $4,616 million from $9,234 million.
Exploration costs declined to $83 million in the June-end quarter of 2023 from $143 million in the comparable period of 2022 and are also below our projection of $122.
However, production and operating expenses rose to $1,886 million in the reported quarter from $1,741 million a year ago.
Balance Sheet & Capital Spending
As of Jun 30, 2023, ConocoPhillips had $5,735 million in cash and cash equivalents. The company had a total long-term debt of $15,565 million. At the second-quarter end, the company had a short-term debt of $879 million.
Capital expenditure and investments totaled $2,923 million. Net cash provided by operating activities was $3,854 million.
Guidance
For 2023, ConocoPhillips expects a total production of 1.80-1.81 million barrels of oil equivalent per day (MMBoe/d), indicating an increase from the previously mentioned 1.78-1.80 MMBoe/d. For the third quarter, COP expects production between 1.78 MMBoe/d and 1.82 MMBoe/d.
For 2023, the company stated its total capital budget of $10.8-$11.2 billion.
Zacks Rank & Stocks to Consider
ConocoPhillips currently carries a Zacks Rank #3 (Hold).
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1 and $1.34, respectively.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2023 and 2024 earnings per share is pegged at $3.85 and $3.61, respectively. GLP currently has a Zacks Style Score of A for Value.
Evolution Petroleum is an independent energy company. EPM has a Zacks Style Score of A for Growth.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.
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ConocoPhillips (COP) Lags on Q2 Earnings, Ups '23 Output View
ConocoPhillips (COP - Free Report) reported second-quarter 2023 adjusted earnings per share of $1.84, missing the Zacks Consensus Estimate of $1.94. The bottom line declined from the prior-year quarter’s $3.91 per share.
One of the world’s leading independent oil and gas producers headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $12,884 million decreased from the second-quarter 2022 figure of $21,989 million. The top line also missed the Zacks Consensus Estimate of $14,644 million.
Lower average realized oil equivalent prices have led to weak quarterly results. Increasing production and operating expenses also affected the company’s second-quarter performance.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote
Dividend
ConocoPhillips has announced a quarterly ordinary dividend of 51 cents per share, unchanged from the last paid dividend. The dividend is payable on Sept 1, 2023, to stockholders of record at the close of business on Aug 16, 2023. Additionally, COP announced a variable return of cash payment of 60 cents per share.
ConocoPhillips reiterated its 2023 planned return of capital to shareholders of $11 billion.
Production
Total production averaged 1,805 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,692 MBoe/d. The metric also beat our estimate of 1,791 MBoe/d. Of the total output, 51.6% was crude oil. Overall production was higher than the year-ago period primarily due to the increased production in the Lower 48.
ConocoPhillips’ crude oil production increased to 931 thousand barrels per day (MBbls/d) from the year-ago quarter’s 871 MBbls/d and also beat our estimate of 914.3 MBbls/d.
Production of natural gas liquids totaled 283 MBbls/d, higher than the year-ago period’s 244 MBbls/d. The metric is above our projection of 263.7 MBbls/d.
Bitumen production for the quarter was 66 MBbls/d, up from 59 MBbls/d reported in the year-ago quarter. Also, the company’s natural gas production was 3,147 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,107 MMcf/d.
Realized Prices
Average realized oil equivalent prices declined to $54.50 per barrel from the year-ago level of $88.57.
The average realized crude oil price for the second quarter was $74.19 per barrel, reflecting a decrease from the year-ago figure of $111.50. The metric is slightly above our projection of $71.17.
The average realized natural gas price was $5.04 per thousand cubic feet, down from $10.15 reported in the year-ago quarter. Realized natural gas liquids price declined to $20.72 per barrel from the year-ago quarter’s $43.26 and is also below our projection of $23.90.
Total Expenses
ConocoPhillips’ second-quarter total expenses declined to $9,522 million from $14,334 million in the corresponding period of 2022. The metric is also below our projection of $11,214 million. The cost of purchased commodities fell to $4,616 million from $9,234 million.
Exploration costs declined to $83 million in the June-end quarter of 2023 from $143 million in the comparable period of 2022 and are also below our projection of $122.
However, production and operating expenses rose to $1,886 million in the reported quarter from $1,741 million a year ago.
Balance Sheet & Capital Spending
As of Jun 30, 2023, ConocoPhillips had $5,735 million in cash and cash equivalents. The company had a total long-term debt of $15,565 million. At the second-quarter end, the company had a short-term debt of $879 million.
Capital expenditure and investments totaled $2,923 million. Net cash provided by operating activities was $3,854 million.
Guidance
For 2023, ConocoPhillips expects a total production of 1.80-1.81 million barrels of oil equivalent per day (MMBoe/d), indicating an increase from the previously mentioned 1.78-1.80 MMBoe/d. For the third quarter, COP expects production between 1.78 MMBoe/d and 1.82 MMBoe/d.
For 2023, the company stated its total capital budget of $10.8-$11.2 billion.
Zacks Rank & Stocks to Consider
ConocoPhillips currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy sector are Oceaneering International, Inc. (OII - Free Report) , Global Partners (GLP - Free Report) and Evolution Petroleum Corporation (EPM - Free Report) , currently sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1 and $1.34, respectively.
Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2023 and 2024 earnings per share is pegged at $3.85 and $3.61, respectively. GLP currently has a Zacks Style Score of A for Value.
Evolution Petroleum is an independent energy company. EPM has a Zacks Style Score of A for Growth.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.