ConocoPhillips narrowed its fourth quarter and full year losses thanks to lower non-cash impairments.
The Houston-based company reported a fourth quarter 2016 net loss of $35 million, or a loss of $0.03 per share, compared with a fourth quarter 2015 net loss of $3.5 billion.
Excluding special items, fourth quarter 2016 adjusted earnings were a net loss of $318 million, or a loss of $0.26 per share, compared with a fourth quarter 2015 adjusted net loss of $1.1 billion.
“Earnings were higher compared with the fourth quarter of 2015 due to lower non-cash impairments, which were treated as special items, higher realized prices and lower exploration expenses,” ConocoPhillips said.
Fourth quarter cash provided by operating activities was $1.44 billion.
Excluding a $310 million change in operating working capital, ConocoPhillips generated $1.75 billion in cash from operations for the quarter.
ConocoPhillips said special items for the fourth quarter were “primarily driven by gains on a sale in Senegal and a Minnesota iron ore reversionary interest, as well as net benefits from non-cash impairments.”
Full year 2016 earnings were a net loss of $3.6 billion, or a loss of $2.91 per share, compared with a full year 2015 net loss of $4.4 billion.
Excluding special items, full year 2016 adjusted earnings came in at a net loss of $3.3 billion, or a loss of $2.66 per share, compared with a full-year 2015 adjusted net loss of $1.7 billion.
“Adjusted earnings were lower compared with 2015 primarily due to lower realized prices,” the company said.
The company said that it achieved full year production, excluding Libya, of 1.567 million barrels of oil equivalent per day.
Production growth adjusted for downtime and dispositions came in at 3 percent year-over-year.
The company’s total realized price during 2016 was $28.35 per barrel of oil equivalent, compared with $34.34 per barrel of oil equivalent in 2015.
Capital expenditures for 2016 was $4.9 billion, a more than 50 percent reduction compared with 2015.
The company said it reduced production and operating expenses by 19 percent year-over- year in 2017.
The company also reduced adjusted operating costs by 19 percent in 2016 compared to the prior year.
ConocoPhillips generated $1.3 billion in proceeds from asset dispositions in 2016.
The company’s preliminary year-end proved reserves stood at 6.4 billion barrels of oil equivalent.
Full year 2017 production, excluding Libya, is expected to be 1.54 million boepd to 1.57 million boepd, resulting in the flat to 2 percent growth compared to 2016 levels.
The company’s 2016 guidance for production and operating expenses is $6.1 billion, with an adjusted operating cost guidance of $6 billion.
The company’s 2017 guidance for capital expenditures is $5 billion.
“Our recent performance highlights the significant changes we’ve made as a company to respond to a world of lower and more volatile commodity prices,” ConocoPhillips CEO and chairman Ryan Lance said.