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) Down 12.1% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for ConocoPhillips (COP - Free Report) . Shares have lost about 12.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ConocoPhillips due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ConocoPhillips' Q2 Earnings Miss Estimates Due to Lower Crude Prices
ConocoPhillips reported second-quarter 2019 adjusted earnings per share of $1.01, missing the Zacks Consensus Estimate of $1.04 and declining from the year-ago figure of $1.09.
Based in Houston, TX, the world’s largest independent oil and gas producer’s quarterly revenues of $8,380 million decreased from second-quarter 2018 sales of $9,240 million and missed the Zacks Consensus Estimate of $9,898 million.
The weak second-quarter 2019 results are primarily attributable to lower realized commodity prices, partially offset by higher volumes from the company’s unconventional assets.
Production Growth
Total production averaged 1,332 thousand barrels of oil equivalent per day (MBoe/d), up 6.6% from the year-ago quarter’s 1,249 Mboe/d. ConocoPhillips’ production of crude oil came in at 702 thousand barrels per day (MBD), higher than the year-ago quarter’s 624 MBD.
The company’s production of natural gas liquids came in at 118 MBD, higher than the year-ago quarter’s 103 MBD. Bitumen production in the quarter was recorded at 51 MBD, lower than the second-quarter 2018 figure of 63 MBD.
Natural gas output came in at 2,768 million cubic feet per day (MMcf/d), marginally higher than the year-ago level of 2,754 MMcf/d. The overall production was aided by growth in the company’s Big 3 unconventional assets (Eagle Ford, Bakken and Delaware), alongside Alaska, Europe and Asia Pacific operations.
Realized Prices Decline
The average realized crude oil price during the second quarter was $64.88 per barrel, representing a decrease from the year-ago realization of $70.55. Realized natural gas liquids price was recorded at $21.65 per barrel, lower than the year-ago quarter’s $29.94. Average realized natural gas price during second-quarter 2019 was $4.76 per thousand cubic feet, down from the year-ago period’s $5.18. As such, average realized equivalent prices fell to $50.50 per barrel from the year-ago level of $54.32.
Expenses
ConocoPhillips’ second-quarter total expenses decreased to $6,322 million from $6,621 million in the corresponding period of 2018, owing to lower purchased commodities. Production and operating expenses rose to $1,418 million in the reported quarter from $1,313 million in the year-ago period. Also, exploration costs rose to $122 million in second-quarter 2019 from $69 million in the comparable period of 2018.
Balance Sheet & Capital Spending
As of Jun 30, 2019, the oil giant — with a market capitalization of around $65.8 billion — had $5,941 million in total cash and cash equivalents. The company had a total long-term debt of nearly $14,809 million, representing a debt-to-capitalization ratio of 31%.
In the reported quarter, ConocoPhillips generated $2.9 billion in cash from operating activities. Capital expenditures and investments totaled $1.7 billion, and dividend payments grossed $346 million. The company repurchased shares worth $1,250 million in the quarter. Notably, the company generated around $600 million in proceeds from dispositions, in the quarter under review.
Guidance
For third-quarter 2019, the company’s production guidance is projected in the range of 1,290-1,330 MBoe/d, excluding Libya. Quarterly production is expected to be affected by planned turnarounds in Alaska, Asia Pacific and Europe. Full-year 2019 production is expected in the range of $1,310-$1,340 MBoe/d, excluding Libya. For full-year 2019, it expects capital for operating plan to be around $6.3 billion. The company estimates full-year planned share purchase to be $3.5 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -5.95% due to these changes.
VGM Scores
Currently, ConocoPhillips has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
ConocoPhillips has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ConocoPhillips (COP) Down 12.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for ConocoPhillips (COP - Free Report) . Shares have lost about 12.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ConocoPhillips due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ConocoPhillips' Q2 Earnings Miss Estimates Due to Lower Crude Prices
ConocoPhillips reported second-quarter 2019 adjusted earnings per share of $1.01, missing the Zacks Consensus Estimate of $1.04 and declining from the year-ago figure of $1.09.
Based in Houston, TX, the world’s largest independent oil and gas producer’s quarterly revenues of $8,380 million decreased from second-quarter 2018 sales of $9,240 million and missed the Zacks Consensus Estimate of $9,898 million.
The weak second-quarter 2019 results are primarily attributable to lower realized commodity prices, partially offset by higher volumes from the company’s unconventional assets.
Production Growth
Total production averaged 1,332 thousand barrels of oil equivalent per day (MBoe/d), up 6.6% from the year-ago quarter’s 1,249 Mboe/d. ConocoPhillips’ production of crude oil came in at 702 thousand barrels per day (MBD), higher than the year-ago quarter’s 624 MBD.
The company’s production of natural gas liquids came in at 118 MBD, higher than the year-ago quarter’s 103 MBD. Bitumen production in the quarter was recorded at 51 MBD, lower than the second-quarter 2018 figure of 63 MBD.
Natural gas output came in at 2,768 million cubic feet per day (MMcf/d), marginally higher than the year-ago level of 2,754 MMcf/d. The overall production was aided by growth in the company’s Big 3 unconventional assets (Eagle Ford, Bakken and Delaware), alongside Alaska, Europe and Asia Pacific operations.
Realized Prices Decline
The average realized crude oil price during the second quarter was $64.88 per barrel, representing a decrease from the year-ago realization of $70.55. Realized natural gas liquids price was recorded at $21.65 per barrel, lower than the year-ago quarter’s $29.94. Average realized natural gas price during second-quarter 2019 was $4.76 per thousand cubic feet, down from the year-ago period’s $5.18. As such, average realized equivalent prices fell to $50.50 per barrel from the year-ago level of $54.32.
Expenses
ConocoPhillips’ second-quarter total expenses decreased to $6,322 million from $6,621 million in the corresponding period of 2018, owing to lower purchased commodities. Production and operating expenses rose to $1,418 million in the reported quarter from $1,313 million in the year-ago period. Also, exploration costs rose to $122 million in second-quarter 2019 from $69 million in the comparable period of 2018.
Balance Sheet & Capital Spending
As of Jun 30, 2019, the oil giant — with a market capitalization of around $65.8 billion — had $5,941 million in total cash and cash equivalents. The company had a total long-term debt of nearly $14,809 million, representing a debt-to-capitalization ratio of 31%.
In the reported quarter, ConocoPhillips generated $2.9 billion in cash from operating activities. Capital expenditures and investments totaled $1.7 billion, and dividend payments grossed $346 million. The company repurchased shares worth $1,250 million in the quarter. Notably, the company generated around $600 million in proceeds from dispositions, in the quarter under review.
Guidance
For third-quarter 2019, the company’s production guidance is projected in the range of 1,290-1,330 MBoe/d, excluding Libya. Quarterly production is expected to be affected by planned turnarounds in Alaska, Asia Pacific and Europe. Full-year 2019 production is expected in the range of $1,310-$1,340 MBoe/d, excluding Libya. For full-year 2019, it expects capital for operating plan to be around $6.3 billion. The company estimates full-year planned share purchase to be $3.5 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -5.95% due to these changes.
VGM Scores
Currently, ConocoPhillips has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
ConocoPhillips has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.