ConocoPhillips Q2 Loss Widens, Results Miss View; Lifts FY16 Production Outlook

(RTTNews) - ConocoPhillips (COP) on Thursday reported a loss for the second quarter that widened from last year, reflecting lower revenues and one-time charges. The results for the quarter missed analysts' estimates. However, the company raised its production outlook for the full-year.

Like other companies in the oil industry, ConocoPhillips is struggling with lower oil prices. The company's net loss for the second quarter was $1.07 billion or $0.86 per share, wider than net loss of $179 million or $0.15 per share in the prior year.

Special items for the latest quarter were related to non-cash impairments in the Lower 48, primarily in the Gulf of Mexico; pension settlement expense; deferred tax adjustments; and a gain on an asset sale.

Excluding special items, adjusted loss for the quarter was $0.79 per share, compared to earnings $0.07 per share in the previous year. The decline in adjusted earnings was primarily due to lower realized prices.

On average, 23 analysts polled by Thomson Reuters expected the company to report loss of $0.61 per share. Analysts' estimates typically exclude special items.

Total revenues and other income plunged to $5.58 billion from $8.66 billion in the same period last year. Analysts expected revenues of $6.73 billion.

The company's total realized price in the quarter was $27.79 per barrel of oil equivalent or BOE, compared with $39.06 per BOE in the year-ago period, reflecting lower average realized prices across all commodities.

Production for the second quarter was 1,546 thousand barrels of oil equivalent per day or MBOED, a decrease of 49 MBOED from the same period a year ago. When adjusted for 95 MBOED from dispositions and downtime, production increased 46 MBOED, or 3 percent.

Looking ahead, ConocoPhillips' third-quarter 2016 production guidance is 1,510 to 1,550 MBOED, which reflects significant planned turnaround activity during the quarter.

For full-year 2016, ConocoPhillips raised its production guidance to 1,540 to 1,570 MBOED, reflecting strong year-to-date performance across most of the portfolio. Earlier, the company had said it expects to meet its full-year 2016 production guidance of about 1,525 MBOED.

The company also lowered its 2016 capital expenditures guidance from $5.7 billion to $5.5 billion.