ConocoPhillips posts $3.1 billion in third-quarter earnings

Oct. 29, 2019
ConocoPhillips reported third-quarter earnings of $3.1 billion vs. third-quarter 2018 earnings of $1.9 billion. Excluding special items, third-quarter adjusted earnings were $900 million vs. third-quarter 2018 adjusted earnings of $1.6 billion.

ConocoPhillips reported third-quarter earnings of $3.1 billion compared with third-quarter 2018 earnings of $1.9 billion. Excluding special items, third-quarter adjusted earnings were $900 million compared with third-quarter 2018 adjusted earnings of $1.6 billion. Special items for the current quarter were primarily related to a gain realized on the completed UK divestiture (OGJ Online, Sept. 30, 2019). For the quarter, cash flow from operations reached $2.3 billion.

Production (excluding Libya) for the third quarter was 1.32 million boe/d, an increase of 98,000 boe/d over the same period a year ago. Adjusting for closed dispositions and acquisitions, underlying production increased 83,000 boe/d mainly because of production 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. Production from Libya averaged 44,000 boe/d.

In the Lower 48, production from the Big 3 unconventionals averaged 379,000 boe/d. The company completed construction and commissioning of the Montney Phase 1 gas plant in Canada, with startup awaiting completion of a third-party pipeline. In Malaysia, production from Kebabangan field continued ramping up and first oil was achieved from Gumusut Phase 2. Turnarounds were completed during the quarter in Alaska, Malaysia, and Norway.

The firm posted 9-month earnings of $6.5 billion compared with 9-month 2018 earnings of $4.4 billion. Nine-month adjusted earnings were $3.2 billion compared with 9-month 2018 adjusted earnings of $4 billion.

Production (excluding Libya) for this year’s first 9 months was 1.31 million boe/d, an increase of 89,000 boe/d from the same period in 2018. Adjusting for closed dispositions and acquisitions, underlying production increased 69,000 boe/d primarily due to growth from the Big 3 unconventionals, development programs, and major projects in Alaska, Europe, and the Asia Pacific. Production from Libya averaged 43,000 boe/d for the first 9 months of the year.

For the 9 months ended Sept. 30, cash provided by operating activities was $8.1 billion.

Fourth-quarter production is expected to be 1.265-1.305 million boe/d. The guidance excludes Libya and reflects the impacts from the completed UK divestiture.