ConocoPhillips Reports Fourth-Quarter and Full-Year 2017 Results
Shareholder Distributions Consistent with the company’s returns-focused value proposition and strategic priorities, ConocoPhillips announced an increase in its distributions to shareholders, consisting of an increase to the quarterly dividend and an increase in the previously announced planned 2018 share repurchases. The board of directors approved a 7.5 percent increase to the quarterly dividend, from 26.5 cents to 28.5 cents per share. The dividend is payable on March 1, 2018 to stockholders of record at the close of business on Feb. 12, 2018. The company expanded its previously announced 2018 share repurchases by 33 percent, from $1.5 billion to $2.0 billion. Reserves Update Preliminary 2017 year-end proved reserves are 5.0 billion barrels of oil equivalent (BOE). The total reserve replacement ratio, including a reduction of 1.9 billion BOE from dispositions, is expected to be a negative 168 percent. Excluding disposition impacts, the organic reserve replacement ratio is expected to be a positive 200 percent. Excluding disposition impacts and market factors, replacement from net additions is expected to be a positive 117 percent. Net additions excluding market factors and dispositions are expected to be 605 million BOE, approximately 70 percent of which are from Lower 48 unconventional assets and 15 percent from assets in the Asia Pacific and Middle East segment. Market factors increased reserves by an additional 431 million BOE. These were primarily related to increased commodity prices across North American assets. Final information related to the company’s 2017 oil and gas reserves, as well as costs incurred, will be provided in ConocoPhillips’ Annual Report on Form 10-K, to be filed with the Securities and Exchange Commission in late February. Bolt-On Transaction in Alaska The company also announced it has signed a definitive agreement with Anadarko Petroleum Corporation (NYSE: APC) to acquire its 22 percent nonoperated interest in the Western North Slope of Alaska, as well as its interest in the Alpine pipeline, for $400 million in cash, before customary adjustments. The transaction is subject to regulatory approval, and has an effective date of Oct. 1, 2017. In 2017, the gross daily production from these assets was 63 thousand barrels of oil equivalent per day (MBOED). In addition, ConocoPhillips will have 100 percent interest in approximately 1.2 million acres of exploration and development lands, including the Willow discovery. Full-Year 2017 Summary Achieved full-year production excluding Libya of 1,356 MBOED; underlying production excluding the impact of closed and planned dispositions grew 19 percent on a production per debt-adjusted share basis and 3 percent overall. Cash provided by operating activities exceeded capital expenditures by $2.5 billion, and exceeded capital expenditures and dividends by $1.2 billion. Paid down $7.6 billion of balance sheet debt, ending the year with debt of $19.7 billion. Generated $16 billion from asset dispositions. Announced preliminary year-end proved reserves of 5.0 billion BOE. Repurchased $3 billion of shares; reduced ending share count by 5 percent year-over-year. Reached settlement on Ecuador arbitration for $337 million.
“2017 was a very successful year by all measures,”said Ryan Lance, chairman and chief executive officer.
“We accelerated our disciplined, returns-focused value proposition and delivered on our strategic priorities. We transformed our portfolio, strengthened our balance sheet, returned 61 percent of cash flow from operations to shareholders through our dividend and buyback program, and achieved our operational milestones, including 200 percent organic reserve replacement.”Lance continued, “We entered 2018 with strong operational and financial momentum. While the outlook for commodity prices has improved, our operating plan remains unchanged and we have already taken clear actions to demonstrate our commitment to maintain discipline and follow our priorities. Since the year began, we’ve paid down $2.25 billion of additional debt, raised our quarterly dividend rate by 7.5 percent, increased our planned 2018 share buybacks to $2 billion, and announced an attractive bolt-on transaction in a high-quality, legacy asset with significant exploration upside. We are focused on safely executing our 2018 operational and financial plan, which is designed to generate top-tier growth in free cash flow and production per debt-adjusted share, while delivering superior returns and a compelling payout to shareholders.” Source / Further information : ConocoPhillips Oil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook]]>