Houston independent ConocoPhillips Co. reported second-quarter earnings of $1.6 billion, essentially unchanged from second-quarter 2018 earnings. Excluding special items, second-quarter adjusted earnings were $1.1 billion, down from second-quarter 2018 adjusted earnings of $1.3 billion.
The firm posted first-half earnings of $3.4 billion, up from $2.5 billion in the year-ago period. First-half adjusted earnings were $2.3 billion, down from adjusted earnings of $2.4 billion a year earlier.
Guidance for the firm’s operating plan capital has been increased to $6.3 billion vs. prior guidance of $6.1 billion, attributable to additional exploration and appraisal drilling in Alaska and the addition of a drilling rig in the Eagle Ford at midyear. The guidance excludes $300 million for acquisitions completed or announced as well as obligations under the production-sharing contract extension awarded by the Indonesian government.
Production excluding Libya for the second quarter was 1.29 million boe/d, an increase of 79,000 boe/d compared with the same period a year ago. Excluding a net benefit of 27,000 boe/d from acquisitions and dispositions, production increased by 52,000 boe/d primarily due to growth from the Big 3 unconventionals, development programs and major projects in Alaska, Europe, and the Asia Pacific. This growth more than offset normal field decline and downtime from planned turnarounds. Production from Libya was 42,000 boe/d.
In Alaska, the winter exploration program was completed with encouraging results on the Greater Willow Area and Narwhal appraisal tests. In the Lower 48, ramp-up from the Big 3 unconventionals was accelerated, increasing production for the quarter to 367,000 boe/d. In Canada, completion operations on the 14-well Montney pad and infrastructure construction progressed as planned with startup on track for the fourth quarter. Turnarounds were successfully completed during the quarter primarily at Greater Ekofisk in Norway, Surmont in Canada, and Prudhoe Bay in Alaska. Additional turnarounds and maintenance will continue in the third quarter.
The firm’s full-year production guidance is 1.31-1.34 million boe/d, excluding Libya. Its third-quarter production guidance is 1.29-1.33 million boe/d, reflecting “planned turnarounds in Alaska, Europe, and Asia Pacific.”
Guidance for capital expenditures, production and adjusted operating cost will be updated upon completion of the planned UK disposition (OGJ Online, Apr. 18, 2019).