ConocoPhillips adjusted 2Q earnings up on higher oil prices
- Business & Finance
ConocoPhillips today reported second-quarter 2014 earnings of $2.1 billion, or $1.67 per share, compared with second-quarter 2013 earnings of $2.1 billion, or $1.65 per share.
Excluding special items, second-quarter 2014 adjusted earnings were $2.0 billion, or $1.61 per share, compared with second-quarter 2013 adjusted earnings of $1.8 billion, or $1.41 per share.
Special items for the current quarter primarily related to additional income associated with pending claims and settlements, partially offset by leasehold impairments in the Canadian arctic.
Production from continuing operations, excluding Libya, for the second quarter of 2014 was 1,556 MBOED, an increase of 95 MBOED compared with the same period a year ago, reflecting 35 MBOED lower downtime in the second quarter of 2014 and 60 MBOED, or 4 percent, net organic growth. This increase was primarily due to new production from development programs and major projects, partially offset by normal field decline.
Adjusted earnings improved compared with second-quarter 2013 primarily due to higher realized prices and volumes, partially offset by higher depreciation and operating costs associated with new production, as well as higher corporate expenses. The company’s total realized price was $70.17 per barrel of oil equivalent (BOE), compared with $66.82 per BOE in the second quarter of 2013, reflecting higher average realized prices across all products.
For the quarter, ConocoPhillips generated $4.24 billion in cash from operations, excluding working capital. Cash provided by continuing operating activities was $3.56 billion, reflecting a $0.68 billion increase in working capital. The company funded $4.2 billion in capital expenditures and investments for continuing operations and paid dividends of $0.9 billion.
“This quarter is evidence of our commitment to deliver annual production and margin growth of 3 to 5 percent, while returning capital to shareholders through an attractive dividend,” said Ryan Lance, chairman and CEO. “We are delivering on these goals, including a recent dividend increase of 5.8 percent, and are positioned for continued growth in volumes, margins and cash flow.”
“Operational and financial performance was very strong in the second quarter,” added Lance. “We continue to grow in our North American unconventional plays, while progressing our major projects. We expect to complete our major turnarounds in the third quarter and maintain a high level of both conventional and unconventional exploration activity. All of this positions us for strong momentum as we exit the year.”