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Image courtesy of ConocoPhillips.

ConocoPhillips slashed its capital expenditure budget by $700 million on Thursday after reporting a $1.46 billion loss for the first quarter.

The Houston-based company posted a net loss attributable to shareholders of $1.46 billion, or a loss of $1.18 per diluted share, on revenues of $5.01 billion.

Excluding special items, first quarter adjusted earnings were a net loss of $1.2 billion, or a loss of $0.95 per share, compared with a first quarter 2015 adjusted net loss of $222 million.

Special items for the current quarter were related to non-cash impairments in the Gulf of Mexico and United Kingdom and pension settlement expense.

ConocoPhillips’s Lower 48 segment recorded a $1.27 billion loss before taxes for the quarter, compared to a $637 million loss a year ago, while the company’s Alaska segment booked a $52 million loss before taxes.

The company’s Canada segment fell to a loss of $418 million before taxes, down from a $218 million loss in the year ago quarter.

Europe and North Africa segment posted a $146 million before tax loss compared to a $172 million income in the first quarter of 2015.

Before tax income from the Asia Pacific and Middle East segment dropped to $89 million from $572 million in the year ago quarter.

ConocoPhillips reported a consolidated loss before taxes of $2.22 billion compared to a $356 million loss in the first quarter of last year.

Consolidated earnings sunk to a $1.46 billion loss, down significantly from $272 million in earnings in the year ago quarter.

Net cash provided by operating activities dropped to $421 million in the first quarter from $2.06 billion in the prior year quarter.

Operating costs for the quarter were $1.69 billion compared with $2.13 billion in the first quarter of 2015.

The company’s crude oil production rose slightly to 605,000 barrels per day in the first quarter.

Total production fell to 1.578 million barrels of oil equivalent per day from 1.610 million barrels of oil equivalent per day in the first quarter of 2015 on slightly lower NGL production.

The company’s NGL production declined to 139,000 barrels per day in the first quarter compared to 148,000 barrels per day in the prior year quarter.

The company said that normal field decline and impacts from dispositions exceeded growth from major projects and development programs, improved well performance and the impact of lower prices on royalties and production sharing contracts.

When adjusted for 66,000 barrels of oil equivalent per day from dispositions and downtime, production increased 34,000 barrels of oil equivalent per day, or 2 percent.

ConocoPhillips’s average realized price per barrel of crude slid down to $31.47 in the first quarter from $48.05 in the year ago quarter.

First quarter capital expenditure plunged to $1.82 billion from $3.33 billion in the first quarter of 2015.

The company has reduced its 2016 capital expenditures guidance from $6.4 billion to $5.7 billion, primarily driven by reduced deepwater exploration activity, deferrals and lower costs across the portfolio.

The company expects to meet its previously stated full year 2016 production guidance of about 1.525 barrels of oil equivalent per day, in line with 2015 production adjusted for 64,000 barrels of oil equivalent per day for the full year impact of 2015 dispositions.

Second quarter 2016 production guidance is 1.50 to 1.54 million barrels of oil equivalent per day reflecting “significant planned turnaround activity during the quarter,” ConocoPhillips said.

The company said its other guidance items remain unchanged, with 2016 operating costs of $7.0 billion, corporate segment net expense of $1.0 billion,depreciation, depletion and amortization of $8.5 billion and exploration dry hole and leasehold impairment expense of $0.8 billion, excluding special items.