ConocoPhillips Reports Third-Quarter 2014 Earnings

ConocoPhillips Reports Third-Quarter 2014 Earnings

ConocoPhillips (NYSE: COP) today reported third-quarter 2014 earnings of $2.7 billion, or $2.17 per share, compared with third-quarter 2013 earnings of $2.5 billion, or $2.00 per share. Excluding special items, third-quarter 2014 adjusted earnings were $1.6 billion, or $1.29 per share, compared with third-quarter 2013 adjusted earnings of $1.8 billion, or $1.47 per share. Special items for the current quarter primarily related to discontinued operations as a result of a gain from the sale of the Nigerian business.

    Highlights

Quarterly dividend increased by 5.8 percent in July.
Third-quarter production of 1,473 MBOED from continuing operations, excluding Libya, represents four percent growth year-over-year when adjusted for downtime.
Eagle Ford and Bakken combined production increased by 33 percent compared with third-quarter 2013.
First production achieved from Foster Creek Phase F and the Britannia Long-Term Compression Project in September, as well as the Gumusut floating production system in October.
Major turnarounds completed in the Alaska, Canada, Europe, and Asia Pacific and Middle East segments.
Major project preparations continue for startup at Kebabangan in the fourth quarter of 2014, and Eldfisk II, Surmont 2 and APLNG in 2015.
Oil discovered at the FAN-1 exploration well, offshore Senegal.
Exploration and appraisal activity continues with unconventional activities in Canada, the Lower 48 and Poland, and conventional drilling in Angola, Australia, the Gulf of Mexico and Senegal.
Sale of the Nigerian business completed in July for proceeds of $1.4 billion, inclusive of deposits previously received.
Operationally, we are meeting our growth milestones,” said Ryan Lance, chairman and CEO. “We recently started production at three major projects, continued to generate strong results from our development activities in the North American unconventionals and completed a series of planned major turnarounds across the portfolio. On the financial side, we increased the dividend in July, and we continue to remain focused on returns and growing our margins.
“ConocoPhillips is well positioned in the current environment to deliver 3 to 5 percent volume and margin growth with an attractive dividend. We have completed a significant transformation that provides us with strong base assets and a high-quality inventory of investment opportunities. Importantly, we expect strong growth in 2015 driven by ongoing success in the North American unconventionals and startup of several major projects, including Surmont 2 and APLNG. Capital spending on those projects peaked in 2014, which provides increasing capital flexibility. This increased flexibility allows us to respond more easily to changing market conditions while continuing to deliver organic growth and an attractive dividend.”
See: Operations Update
Source:
ConocoPhillips
Oil and Gas Press

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