ConocoPhillips reports decrease in 4Q earnings year-over-year

ConocoPhillips posted fourth-quarter 2019 earnings of $700 million compared with fourth-quarter 2018 earnings of $1.9 billion. Excluding special items, fourth-quarter 2019 adjusted earnings were $800 million compared with fourth-quarter 2018 adjusted earnings of $1.3 billion. Special items for the current quarter included primarily a non-cash impairment related to a planned Lower 48 disposition, partially offset by an unrealized gain on Cenovus Energy equity.

Full-year 2019 earnings were $7.2 billion compared with full-year 2018 earnings of $6.3 billion. Excluding special items, full-year 2019 adjusted earnings were $4.0 billion compared with full-year 2018 adjusted earnings of $5.3 billion.

Cash provided by operating activities for 2019 was $11.1 billion. Excluding working capital, cash from operations (CFO) of $11.7 billion exceeded capital expenditures and investments, generating free cash flow of more than $5 billion.

For the quarter, cash provided by operating activities was $3 billion.

Production, excluding Libya, for fourth-quarter 2019 was 1.289 million boe/d, a decrease of 24,000 boe/d from the same period a year ago. Adjusting for closed dispositions and acquisitions, the production increase was primarily due to production growth from the Big 3 unconventionals, development programs, and major projects in Alaska, Europe, and Asia Pacific. The growth more than offset normal field decline. Production from Libya averaged 45,000 boe/d.

In the Lower 48, production from the Big 3 averaged 387,000 boe/d in the quarter, including Eagle Ford of 221,000 boe/d, Bakken of 96,000 boe/d, and Permian unconventional of 70,000 boe/d.

Outlook

The company’s 2020 operating plan capital guidance is $6.5-$6.7 billion. The plan includes funding for ongoing development drilling programs, major projects, exploration and appraisal activities, as well as base maintenance. Capital spend is expected to be higher in the first quarter largely from winter construction and exploration and appraisal drilling in Alaska. Guidance does not include capital for acquisitions.

The company’s 2020 production guidance is 1.23-1.27 million boe/d, including the impact of a recent third-party pipeline outage on Kebabangan field in Malaysia.