ConocoPhillips reported a $1 billion net loss for the third quarter, a slight improvement over the company’s year-ago results.
The Houston-based company posted a net loss of $1 billion, or a loss of $0.84 per share, in the third quarter compared to a year-ago net loss of $1.1 billion, or $0.87 per share.
Excluding special items, third quarter 2016 adjusted earnings were a net loss of $800 million, or a loss of $0.66 per share, compared with a third-quarter 2015 adjusted net loss of $500 million.
The company’s special items for the current quarter included a tax functional currency change at APLNG, restructuring costs across the portfolio, the termination of a rig contract for a Gulf of Mexico deepwater drillship and a deferred tax benefit from a change in U.K. tax law.
ConocoPhillips said earnings for the third quarter were “essentially flat” compared to the year-ago quarter.
Adjusted earnings were lower compared to the third quarter 2015 “primarily due to lower realized prices, lower equity earnings and unfavorable foreign exchange rate impacts, partially offset by a reduction in production and operating expenses,” the company said.
The company’s total realized price was $29.78 per barrel of oil equivalent, compared with $32.87 per BOE in the third quarter of 2015.
Cash provided by operating activities was $1.3 billion for the third quarter.
Excluding a $100 million change in operating working capital, ConocoPhillips generated $1.2 billion in cash from operations during the third quarter.
In addition, the company received proceeds from asset dispositions of $100 million, funded $900 million in capital expenditures and investments and paid dividends of $300 million.
The company also said it sold $1.1 billion of short-term investments in anticipation of debt maturities in October.
Production for the third quarter of 2016 was 1.557 million barrels of oil equivalent per day (MMBOED), an increase of 3 thousand barrels of oil equivalent per day (MBOED) compared to the year-ago.
ConocoPhillips said the increase was the result of growth from major projects and development programs, improved well performance and lower planned downtime that were partly offset by normal field decline and dispositions.
When adjusted by 53 MBOED for the net impact of dispositions and downtime, production grew by 56 MBOED, or a 4 percent increase.
ConocoPhillips increased the midpoint of its full-year 2016 production guidance to 1.565 MMBOED, reflecting a range of 1.560 to 1.570 MMBOED on “strong year-to-date performance across Lower 48, Europe and Asia Pacific.”
The company’s fourth-quarter 2016 production guidance has been set at 1.555 to 1.595 MMBOED, excluding Libya.
Guidance for production and operating expenses is $5.7 billion, resulting in an improved adjusted operating cost guidance of $6.6 billion compared to a prior guidance of $6.8 billion, the company said.
Guidance for capital expenditures has been lowered to $5.2 billion compared to a prior guidance of $5.5 billion.
The company’s other guidance items remain unchanged.
ConocoPhillips’ nine-month 2016 earnings came in at a net loss of $3.6 billion, or a loss of $2.88 per share, compared with a nine-month 2015 net loss of $1 billion.
Nine-month 2016 adjusted earnings came in at a net loss of $3.0 billion, or $2.40 per share, compared with a nine-month 2015 adjusted net loss of $600 million.
ConocoPhillips’ production for the first nine months of 2016 was 1.560 MMBOED, compared with 1.586 MMBOED for the same period in 2015.
The company said the production decline was tied to normal field decline and dispositions, partly offset by new production from major projects and development programs as well as improved well performance.
“Our underlying business performance is delivering strong momentum as we head into 2017….In the third quarter we achieved cash flow neutrality, with operating cash flow covering capital expenditures and the dividend,” ConocoPhillips chairman and CEO Ryan Lance said.
