ConocoPhillips Q3 Earnings Preview

(RTTNews) - U.S. oil and gas giant ConocoPhillips (COP) will give out third-quarter numbers before the market open this Thursday, October 29.

Third-quarter production, excluding Libya, is expected to be 1,510 - 1,550 Million Barrels of Oil Equivalent per Day or MBOED, which reflects planned turnaround activity during the quarter.

The company said it is on track to achieve the high end of its 2015 production target of 2% - 3% growth compared with 2014 production from continuing operations, excluding Libya.

Further, the company lowered its full year capital expenditures guidance to $11 billion from $11.5 billion, to reflect lower capital that's roughly equal parts program efficiencies, deflation in FX and some activity deferral.

ConocoPhillips still expects its operating costs to increase in the second half of the year, as it continues its turnaround work and bring projects online, but given the run rate through the first half of the year, the company lowered its 2015 operating cost guidance to $8.9 billion from $9.2 billion.

The company said it is on track to meet cash flow neutrality in 2017, and on track to deliver over $1 billion of cost savings by 2016.

October 9, ConocoPhillips announced a quarterly dividend of 74 cents per share, payable December 1, 2015 to stockholders of record at the close of business on October 19, 2015.

In the last quarter, ConocoPhillips slipped to loss, as decline in oil and gas prices affected nearly all companies in the sector.

Net loss was $179 million or $0.15 per share, compared to net income of $2.1 billion or $1.67 per share in the prior year. The latest results included primarily a deferred tax charge from a change in Canada's tax law and non-cash impairments.

Excluding special items, the company reported earnings of $81 million or $0.07 per share, while it totaled $2.0 billion or $1.61 per share in the previous year. ConocoPhillips said adjusted earnings were lower due to lower realized prices.

The company's total realized price was $39.09 per barrel of oil equivalent or BOE, compared with $70.17 per BOE in the second quarter of 2014, reflecting lower average realized prices across all commodities.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.04 for the quarter. Analysts' estimates typically exclude certain special items.

Total revenues and other income plunged to $8.66 billion from $14.70 billion generated last year. Analysts expected revenues of $9.55 billion.

Production from continuing operations, excluding Libya, was 1,595 MBOED, an increase of 39 MBOED from the same period a year ago. The company attributed the growth to new production from major projects and development programs, partially offset by normal field decline and downtime.

Ryan Lance, chairman and chief executive officer, said, "We continue to deliver on our operational milestones while positioning the company for a period of lower, more volatile prices. We exceeded our production target, made progress on our major project startups and safely executed our planned turnarounds in the quarter."