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ConocoPhillips (COP) Q4 Earnings Beat on Higher Oil Volumes
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ConocoPhillips (COP - Free Report) reported fourth-quarter 2023 adjusted earnings per share of $2.40, beating the Zacks Consensus Estimate of $2.08. The bottom line, however, declined from the prior-year quarter’s $2.71 per share.
One of the world’s leading independent oil and gas producers headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $15.3 billion decreased from the fourth-quarter 2022 figure of $19.3 billion. The top line, however, beat the Zacks Consensus Estimate of $14.5 billion.
Higher oil equivalent production volumes have led to better-than-expected quarterly results. The positives were partially offset by lower average realized oil equivalent prices.
Total production averaged 1,902 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,758 MBoe/d. The metric also beat our estimate of 1,877.9 MBoe/d. Of the total output, almost 50% 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 949 thousand barrels per day (MBbls/d) from the year-ago quarter’s 912 MBbls/d but missed our estimate of 954.6 MBbls/d.
The production of natural gas liquids totaled 301 MBbls/d, higher than the year-ago period’s 269 MBbls/d. Bitumen production for the quarter was 125 MBbls/d, up from 69 MBbls/d reported in the year-ago quarter.
The company’s natural gas production was 3,161 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,046 MMcf/d.
Realized Prices
Average realized oil equivalent prices declined to $58.21 per barrel from the year-ago level of $71.05.
The average realized crude oil price for the fourth quarter was $80.80 per barrel, reflecting a decrease from the year-ago figure of $85.58. The metric was above our projection of $77.72 per barrel.
The average realized natural gas price was $5.41 per thousand cubic feet, down from $10.44 reported in the year-ago quarter. Realized natural gas liquids price declined to $21.97 per barrel from the year-ago quarter’s $27.21.
Total Expenses
ConocoPhillips’ fourth-quarter total expenses declined to $11.04 billion from $14.03 billion in the corresponding period of 2022. The metric is below our projection of $11.06 billion. The cost of purchased commodities fell to $5.7 billion from $8.7 billion.
Exploration costs plummeted to $85 million in the December quarter of 2023 from $263 million in the comparable period of 2022.
Balance Sheet & Capital Spending
As of Dec 31, 2023, ConocoPhillips had $5.6 billion in cash and cash equivalents. The company had a total long-term debt of $17.9 billion. At the fourth-quarter end, it had a short-term debt of $1.1 billion.
Capital expenditure and investments totaled $2.9 billion. Net cash provided by operating activities was $5.3 billion.
Guidance
For 2024, ConocoPhillips, carrying a Zacks Rank #5 (Strong Sell), guided its total production in the band of 1.91-1.95 million barrels of oil equivalent per day (MMBoe/d). For the first quarter, COP expects production between 1.88 MMBoe/d and 1.92 MMBoe/d.
Three other energy giants that recently reported their quarterly figures are Exxon Mobil Corporation (XOM - Free Report) , BP plc (BP - Free Report) and Chevron Corporation (CVX - Free Report) .
ExxonMobilreported fourth-quarter 2023 earnings per share of $2.48 (excluding identified items), which beat the Zacks Consensus Estimate of $2.21. However, the bottom line declined from the year-ago level of $3.40.
Total quarterly revenues of $84.3 billion missed the Zacks Consensus Estimate of $91.8 billion and declined from the year-ago quarter’s figure of $95.4 billion.
Better-than-expected quarterly earnings primarily resulted from increased liquids production. The positives were partially offset by lower realizations of crude and natural gas prices. To view our detailed earnings blog: ExxonMobil (XOM - Free Report) Q4 Earnings Beat Estimates, Revenues Fall Y/Y.
BP reported fourth-quarter 2023 adjusted earnings of $1.07 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.09 and declined from $1.59 reported a year ago.
Total quarterly revenues of $52,586 million lagged the Zacks Consensus Estimate of $59,530 million and declined from $70,356 million reported in the year-ago quarter.
Chevronreported adjusted fourth-quarter earnings per share of $3.45, topping the Zacks Consensus Estimate of $3.29. The outperformance could be attributed to higher-than-expected U.S. production in the company’s key upstream segment. The unit’s domestic output of 1,598 thousand oil-equivalent barrels per day (MBOE/d) set a new quarterly record and came in above the consensus mark of 1,462 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $4.09 due to weaker oil and natural gas realizations, plus a dip in U.S. refined product sales margins.
The company generated revenues of $47.2 billion. The sales figure missed the Zacks Consensus Estimate of $52.6 billion and decreased 16.5% year over year. To view our detailed earnings blog: Chevron (CVX - Free Report) Q4 Earnings Beat on Record U.S. Production.
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ConocoPhillips (COP) Q4 Earnings Beat on Higher Oil Volumes
ConocoPhillips (COP - Free Report) reported fourth-quarter 2023 adjusted earnings per share of $2.40, beating the Zacks Consensus Estimate of $2.08. The bottom line, however, declined from the prior-year quarter’s $2.71 per share.
One of the world’s leading independent oil and gas producers headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $15.3 billion decreased from the fourth-quarter 2022 figure of $19.3 billion. The top line, however, beat the Zacks Consensus Estimate of $14.5 billion.
Higher oil equivalent production volumes have led to better-than-expected quarterly results. The positives were partially offset by lower average realized oil equivalent prices.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote
Production
Total production averaged 1,902 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,758 MBoe/d. The metric also beat our estimate of 1,877.9 MBoe/d. Of the total output, almost 50% 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 949 thousand barrels per day (MBbls/d) from the year-ago quarter’s 912 MBbls/d but missed our estimate of 954.6 MBbls/d.
The production of natural gas liquids totaled 301 MBbls/d, higher than the year-ago period’s 269 MBbls/d. Bitumen production for the quarter was 125 MBbls/d, up from 69 MBbls/d reported in the year-ago quarter.
The company’s natural gas production was 3,161 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,046 MMcf/d.
Realized Prices
Average realized oil equivalent prices declined to $58.21 per barrel from the year-ago level of $71.05.
The average realized crude oil price for the fourth quarter was $80.80 per barrel, reflecting a decrease from the year-ago figure of $85.58. The metric was above our projection of $77.72 per barrel.
The average realized natural gas price was $5.41 per thousand cubic feet, down from $10.44 reported in the year-ago quarter. Realized natural gas liquids price declined to $21.97 per barrel from the year-ago quarter’s $27.21.
Total Expenses
ConocoPhillips’ fourth-quarter total expenses declined to $11.04 billion from $14.03 billion in the corresponding period of 2022. The metric is below our projection of $11.06 billion. The cost of purchased commodities fell to $5.7 billion from $8.7 billion.
Exploration costs plummeted to $85 million in the December quarter of 2023 from $263 million in the comparable period of 2022.
Balance Sheet & Capital Spending
As of Dec 31, 2023, ConocoPhillips had $5.6 billion in cash and cash equivalents. The company had a total long-term debt of $17.9 billion. At the fourth-quarter end, it had a short-term debt of $1.1 billion.
Capital expenditure and investments totaled $2.9 billion. Net cash provided by operating activities was $5.3 billion.
Guidance
For 2024, ConocoPhillips, carrying a Zacks Rank #5 (Strong Sell), guided its total production in the band of 1.91-1.95 million barrels of oil equivalent per day (MMBoe/d). For the first quarter, COP expects production between 1.88 MMBoe/d and 1.92 MMBoe/d.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Energy Earnings So Far
Three other energy giants that recently reported their quarterly figures are Exxon Mobil Corporation (XOM - Free Report) , BP plc (BP - Free Report) and Chevron Corporation (CVX - Free Report) .
ExxonMobilreported fourth-quarter 2023 earnings per share of $2.48 (excluding identified items), which beat the Zacks Consensus Estimate of $2.21. However, the bottom line declined from the year-ago level of $3.40.
Total quarterly revenues of $84.3 billion missed the Zacks Consensus Estimate of $91.8 billion and declined from the year-ago quarter’s figure of $95.4 billion.
Better-than-expected quarterly earnings primarily resulted from increased liquids production. The positives were partially offset by lower realizations of crude and natural gas prices. To view our detailed earnings blog: ExxonMobil (XOM - Free Report) Q4 Earnings Beat Estimates, Revenues Fall Y/Y.
BP reported fourth-quarter 2023 adjusted earnings of $1.07 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The bottom line missed the Zacks Consensus Estimate of $1.09 and declined from $1.59 reported a year ago.
Total quarterly revenues of $52,586 million lagged the Zacks Consensus Estimate of $59,530 million and declined from $70,356 million reported in the year-ago quarter.
Lower realizations of commodity prices led to weak quarterly results. To view our detailed earnings blog: BP Misses Q4 Earnings Estimates, Expects 2024 Production Hike.
Chevronreported adjusted fourth-quarter earnings per share of $3.45, topping the Zacks Consensus Estimate of $3.29. The outperformance could be attributed to higher-than-expected U.S. production in the company’s key upstream segment. The unit’s domestic output of 1,598 thousand oil-equivalent barrels per day (MBOE/d) set a new quarterly record and came in above the consensus mark of 1,462 MBOE/d.
However, the company’s bottom line fell from the year-ago adjusted profit of $4.09 due to weaker oil and natural gas realizations, plus a dip in U.S. refined product sales margins.
The company generated revenues of $47.2 billion. The sales figure missed the Zacks Consensus Estimate of $52.6 billion and decreased 16.5% year over year. To view our detailed earnings blog: Chevron (CVX - Free Report) Q4 Earnings Beat on Record U.S. Production.