Markets
SU

ConocoPhillips (COP) Incurs Narrower-than-Expected Q4 Loss

An image of a pen on an open laptop
Credit: Shutterstock photo

Upstream energy player ConocoPhillipsCOP reported fourth-quarter 2016 adjusted loss of 26 cents per share, narrower than the Zacks Consensus Estimate of a loss of 38 cents and the year-ago-quarter adjusted loss of 90 cents. Significantly low expenses as well as higher commodity price realizations led to the improvement, which was partially offset by normal field declines and dispositions.

Revenues of $7,254 million missed the Zacks Consensus Estimate of $7,281 million. However, the top line improved from $6,766 million generated in the year-ago quarter.

Exploration and Production

Daily production from continuing operations averaged 1.596 million barrels of oil equivalent (MMBOE) in the quarter as against 1.599 MMBOE in the year-ago quarter. The underperformance stemmed from normal field declines and dispositions. The negatives were partially mitigated by new output from major developments.

Price Realization

Average realized price for oil was $47.05 per barrel compared with $40.35 in the year-earlier quarter. Natural gas liquids were sold at $21.82 per barrel as against $16.42 a year ago. The price of natural gas was $3.44 per thousand cubic feet compared with $3.36 in fourth-quarter 2015.

Financials

As of Dec 31, 2016, the company had total cash and cash equivalents of $3.6 billion and debt of $27.3 billion, with a debt-to-capitalization ratio of 44%. In the reported quarter, ConocoPhillips generated cash of $1.4 billion from operating activities. The company spent $999 million for capital expenditures and investments and paid dividends of $313 million.

Total Expenses

The company reported expenses of $7.3 billion in the fourth quarter as against $11.8 billion in the October-December quarter of 2015.

Share Performance

The company's price chart was showed significant strength in the last three months. During the aforesaid period, ConocoPhillips gained 12.2% compared with 7.7% increase for the Zacks categorized Oil-Energy industry.

Guidance

ConocoPhillips' first-quarter 2017 production guidance is in the range of 1,540-1,580 MBOED. For 2017, ConocoPhillips projects output between 1,540 MBOED and 1,570 MBOED.

Also, the company anticipates 2017 capital expenditures of $5 billion.

Zacks Rank

ConocoPhillips currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy sector include Imperial Oil Limited IMO , Suncor Energy Inc. SU and Denbury Resources Inc. DNR . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

In 2017, Imperial Oil's earnings is anticipated to grow by 386.6%.

Suncor posted an average earnings surprise of 40.55% in the last four quarters.

Denbury surpassed the Zacks Consensus Estimate in each of the last four quarters with an average earnings surprise of 283.33%.

Zacks' Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Suncor Energy Inc. (SU): Free Stock Analysis Report

Imperial Oil Limited (IMO): Free Stock Analysis Report

Denbury Resources Inc. (DNR): Free Stock Analysis Report

ConocoPhillips (COP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SU COP DNR IMO

Other Topics

Stocks

Latest Markets Videos