ConocoPhillips Increases 2016 Production Guidance - Quick Facts

(RTTNews) - ConocoPhillips (COP) increased the midpoint of full-year 2016 production guidance to 1,565 MBOED, reflecting a range of 1,560 to 1,570 MBOED on strong year-to-date performance across Lower 48, Europe and Asia Pacific. Guidance for capital expenditures has been lowered to $5.2 billion versus prior guidance of $5.5 billion. Fourth-quarter 2016 production guidance is 1,555 to 1,595 MBOED. Production guidance excludes Libya.

Third-quarter production was 1,557 thousand barrels of oil equivalent per day (MBOED), an increase of 3 MBOED compared with the same period a year ago. The company said the increase was the result of growth from major projects and development programs, improved well performance and lower planned downtime, partly offset by normal field decline and dispositions. When adjusted by 53 MBOED for the net impact of dispositions and downtime, production increased 4 percent.

Excluding special items, third-quarter 2016 adjusted earnings were a net loss of $0.8 billion, or $0.66 per share, compared with a third-quarter 2015 adjusted net loss of $0.5 billion, or $0.38 per share. The company said its adjusted earnings were lower compared with third-quarter 2015 primarily due to lower realized prices, lower equity earnings and unfavorable foreign exchange rate impacts, partially offset by a reduction in production and operating expenses.

Ryan Lance, CEO, said: "In the third quarter we achieved cash flow neutrality, with operating cash flow covering capital expenditures and the dividend. For the second quarter in a row, we are lowering 2016 guidance on our capital expenditures and adjusted operating costs, while increasing our 2016 production guidance. We're hitting our key operational targets across the business and achieving important milestones, including the startup of Train 2 at APLNG and continued ramp up at Surmont. We continued to progress our announced asset sales and recently retired $1.25 billion of debt."