ConocoPhillips Posts Loss In Q2, Cuts Capex Guidance

(RTTNews) - Energy firm ConocoPhillips (COP) Thursday reported a loss for its second quarter, compared to a profit last year, as a decline in oil and gas prices affected nearly all companies in the sector. Further, the company lowered its full year capital expenditures guidance.

Net loss was $179 million or $0.15 per share, compared to net income of $2.1 billion or $1.67 per share in the prior year. The latest results included primarily a deferred tax charge from a change in Canada's tax law and non-cash impairments.

Excluding special items, the company reported earnings of $81 million or $0.07 per share, while it totaled $2.0 billion or $1.61 per share in the previous year. ConocoPhillips said adjusted earnings were lower due to lower realized prices.

The company's total realized price was $39.09 per barrel of oil equivalent or BOE, compared with $70.17 per BOE in the second quarter of 2014, reflecting lower average realized prices across all commodities.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.04 for the quarter. Analysts' estimates typically exclude special items.

Total revenues and other income plunged to $8.66 billion from $14.70 billion generated last year. Analysts expected revenues of $9.55 billion.

Production from continuing operations, excluding Libya, was 1,595 Million Barrels of Oil Equivalent per Day or MBOED, an increase of 39 MBOED from the same period a year ago.

The company attributed the growth to new production from major projects and development programs, partially offset by normal field decline and downtime.

Ryan Lance, chairman and chief executive officer, said, "We continue to deliver on our operational milestones while positioning the company for a period of lower, more volatile prices. We exceeded our production target, made progress on our major project startups and safely executed our planned turnarounds in the quarter."

The company said it is on track to achieve the higher end of its 2015 production target of 2 to 3 percent growth compared with 2014 production from continuing operations, excluding Libya.

Third-quarter production, excluding Libya, is expected to be 1,510 to 1,550 MBOED, which reflects planned turnaround activity during the quarter.

Further, the company lowered its full year capital expenditures guidance from $11.5 billion to $11 billion and operating cost guidance from $9.2 billion to $8.9 billion.

COP closed up 1.3 percent on Wednesday at $52.90, and rose 0.6 percent in pre-market activity.