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) Beats on Q2 Earnings, Lifts Output View
Read MoreHide Full Article
ConocoPhillips (COP - Free Report) reported second-quarter 2018 adjusted earnings per share of $1.09, beating the Zacks Consensus Estimate of $1.06 and improving from the year-ago 14 cents. Higher oil and natural gas price realizations primarily drove the bottom line, partially negated by a decline in field.
Revenues of $9,240 million missed the Zacks Consensus Estimate of $9,793 million but improved from $8,882 million a year ago.
Exploration and Production
Production from continuing operations averaged 1,249 thousand barrels of oil equivalent per day (MBOED) in the quarter, lower than 1,437 MBOED in the year-ago quarter. The underperformance was led by divestment of assets and decline of field.
Price Realization
Average realized price for oil was $70.55 a barrel, up from $48.16 in the year-earlier quarter. Natural gas liquids were sold at $29.94 a barrel, higher than $20.99 in the year-ago quarter. The price of natural gas was $5.18 per thousand cubic feet, up from $3.83 in second-quarter 2017.
Financials
As of Jun 30, 2018, the company had total cash, cash equivalents and restricted cash of $3.5 billion and total debt of almost $15 billion, with a debt-to-capitalization ratio of 32%. In the reported quarter, ConocoPhillips generated $3.3 billion in cash from operating activities. Capital expenditures and investments totaled almost $2 billion and dividend payments grossed $337 million.
Total Expenses
Expenses of $6.6 billion in the second quarter contracted from $13.2 billion in the April-to-June quarter of 2017.
Guidance
ConocoPhillips raised its 2018 capital spending projection from $5.5 billion to $6 billion. For the July-to-September quarter of this year, the company projects production in the range of 1,215-1,255 MBOED.
For 2018, the company’s production projection was raised from 1,200-1,240 MBOED to 1,225-1,255 MBOED.
ConocoPhillips sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include McDermott International, Inc. , Murphy Oil Corporation (MUR - Free Report) and Marathon Oil Corporation (MRO - Free Report) . While Murphy Oil and Marathon Oil have a Zacks Rank #2 (Buy), McDermott sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
McDermott’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average positive surprise being 73.6%.
Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive earnings surprise being 102.5%.
We expect Marathon Oil to witness year-over-year earnings growth of 336.8% in 2018.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
ConocoPhillips (COP) Beats on Q2 Earnings, Lifts Output View
ConocoPhillips (COP - Free Report) reported second-quarter 2018 adjusted earnings per share of $1.09, beating the Zacks Consensus Estimate of $1.06 and improving from the year-ago 14 cents. Higher oil and natural gas price realizations primarily drove the bottom line, partially negated by a decline in field.
Revenues of $9,240 million missed the Zacks Consensus Estimate of $9,793 million but improved from $8,882 million a year ago.
Exploration and Production
Production from continuing operations averaged 1,249 thousand barrels of oil equivalent per day (MBOED) in the quarter, lower than 1,437 MBOED in the year-ago quarter. The underperformance was led by divestment of assets and decline of field.
Price Realization
Average realized price for oil was $70.55 a barrel, up from $48.16 in the year-earlier quarter. Natural gas liquids were sold at $29.94 a barrel, higher than $20.99 in the year-ago quarter. The price of natural gas was $5.18 per thousand cubic feet, up from $3.83 in second-quarter 2017.
Financials
As of Jun 30, 2018, the company had total cash, cash equivalents and restricted cash of $3.5 billion and total debt of almost $15 billion, with a debt-to-capitalization ratio of 32%. In the reported quarter, ConocoPhillips generated $3.3 billion in cash from operating activities. Capital expenditures and investments totaled almost $2 billion and dividend payments grossed $337 million.
Total Expenses
Expenses of $6.6 billion in the second quarter contracted from $13.2 billion in the April-to-June quarter of 2017.
Guidance
ConocoPhillips raised its 2018 capital spending projection from $5.5 billion to $6 billion. For the July-to-September quarter of this year, the company projects production in the range of 1,215-1,255 MBOED.
For 2018, the company’s production projection was raised from 1,200-1,240 MBOED to 1,225-1,255 MBOED.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips Price, Consensus and EPS Surprise | ConocoPhillips Quote
Zacks Rank & Other Stocks to Consider
ConocoPhillips sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include McDermott International, Inc. , Murphy Oil Corporation (MUR - Free Report) and Marathon Oil Corporation (MRO - Free Report) . While Murphy Oil and Marathon Oil have a Zacks Rank #2 (Buy), McDermott sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
McDermott’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average positive surprise being 73.6%.
Murphy Oil’s bottom line surpassed the consensus mark in each of the last four quarters, the average positive earnings surprise being 102.5%.
We expect Marathon Oil to witness year-over-year earnings growth of 336.8% in 2018.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>