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

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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.


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.


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%.

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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.

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