ConocoPhillips Posts Loss In Q1; Reduces 2016 Capex Guidance

(RTTNews) - ConocoPhillips (COP) reported a first-quarter net loss to company of $1.5 billion, or $1.18 per share, compared to profit of of $272 million, or $0.22 per share, previous year. Special items for the quarter were related to non-cash impairments in the Gulf of Mexico and United Kingdom and pension settlement expense.

Excluding special items, ConocoPhillips reported a first-quarter 2016 adjusted net loss of $1.2 billion, or $0.95 per share, compared to a adjusted net loss of $222 million, or $0.18 per share, prior year. The company said its adjusted earnings were lower compared with first-quarter 2015 primarily due to lower realized prices, partially offset by lower operating costs. On average, 22 analysts polled by Thomson Reuters expected the company to report a loss per share of $1.05 for the quarter. Analysts' estimates typically exclude special items.

Total Revenues and Other Income decreased year-over-year to $5.02 billion from $8.00 billion, a year ago. Analysts expected revenue of $7.22 billion, for the quarter. Production for the first quarter of 2016 was 1,578 thousand barrels of oil equivalent per day (MBOED), a decrease of 32 MBOED compared with the same period a year ago.

ConocoPhillips expects to meet its previously stated full-year 2016 production guidance of approximately 1,525 MBOED, in line with 2015 production adjusted for 64 MBOED for the full-year impact of 2015 dispositions. Second-quarter 2016 production guidance is 1,500 to 1,540 MBOED, which reflects significant planned turnaround activity during the quarter.

ConocoPhillips has reduced its 2016 capital expenditures guidance from $6.4 billion to $5.7 billion, primarily driven by reduced deepwater exploration activity, deferrals and lower costs across the portfolio.