By Tess Stynes and Nathalie Tadena
ConocoPhillips's (COP) fourth-quarter earnings fell 58% as
commodity prices fell and as the exploration and production company
was hurt by lower average realized prices for oil and natural
gas.
"We achieved our production targets, continued to successfully
execute our growth projects and drilling programs, and announced
significant progress on our asset disposition program," said
Chairman and Chief Executive Ryan Lance. "Our quarterly production
from continuing operations is growing and we delivered strong
organic reserve replacement."
Conoco is in the midst of a three-year plan aimed at improving
its balance sheet and focusing on more-profitable, unconventional
fields in North Dakota, Texas and other plays throughout North
America. The company spun off its refining, pipeline and chemicals
business as Phillips 66 (PSX) during May.
Including its recent deal to sell some properties in Montana and
North Dakota to Denbury Resources Inc. (DNR) for $1.05 billion,
Conoco had announced total asset sales of about $12 billion since
the beginning of 2012, far exceeding the company's stated goal of
$8 billion to $10 billion in asset sales by the end of 2013.
ConocoPhillips reported a profit of $1.43 billion, or $1.16 a
share, down from $3.39 billion, or $2.56 a share, a year earlier.
Excluding disposition-related impairments, discontinued operations
and other items, adjusted earnings fell to $1.43 a share from $1.55
a share. The company said adjusted earnings fell primarily due to
lower commodity prices.
The latest period included a loss of 32 cents a share from
discontinued operations, while the year-ago period included income
of $1.61 from discontinued operations. Conoco also noted that its
recent agreements to dispose of interests in the Kashagan Field and
the Algeria and Nigeria business units, which have been reported as
discontinued operations, hurt adjusted earnings by two cents a
share in the latest period.
Sales and other operating revenues slipped 2.4% to $15.57
billion. Analysts polled by Thomson Reuters most recently projected
earnings of $1.42 on revenue of $13.31 billion.
Production from continuing operations edged up 1.8% to 1.566
million barrels of oil equivalent a day. The company said the
increase was primarily due to new production from major projects
and drilling programs, as well as higher production in Libya and
China. Average realized prices for crude oil fell 2.7% and for
natural gas slipped 1.5%.
Earlier on Wednesday, Phillips 66 reported that fourth-quarter
earnings fell 65% amid a $564 million investment write-down and
weaker revenue, masking the benefits of stronger refining and
chemical margins.
Shares were off by nine cents to $61 after hours. The stock is
up 17% over the past 12 months.
Write to Tess Stynes at tess.stynes@dowjones.com and Nathalie
Tadena at nathalie.tadena@dowjones.com
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