ConocoPhillips turned things around from one year ago

After a second quarter 2017 loss of more than $3 billion, ConocoPhillips reports turning things around with a second-quarter 2018 earnings of $1.6 billion.

It figures to an increase of $1.39 a share compared to the $2.78 a share loss reported a year earlier.

Excluding special items, second quarter adjusted earnings this year were $1.3 billion or $1.09 a share.  A year ago, the adjusted earnings were $0.2 billion.

Here is a listing of earnings results.

  • Cash provided by operating activities was $3.34 billion. Excluding working capital, cash from operations of $3.16 billion exceeded capital expenditures, dividends and share repurchases.
  • Second-quarter production excluding Libya of 1,211 MBOED achieved the high end of guidance; year-over-year underlying production excluding the impact of closed dispositions grew 5 percent overall and 34 percent on a production per debt-adjusted share basis.
  • Year-over-year production from the Lower 48 Big 3 unconventional plays grew by 37 percent; achieved Big 3 production milestone of 300 MBOED significantly ahead of schedule.
  • Paid down $2.1 billion of balance sheet debt and achieved debt target of $15.0 billion 18 months ahead of plan.
  • Ended the quarter with cash, cash equivalents and restricted cash of $3.5 billion and short-term investments of $0.6 billion, totaling $4.1 billion of ending cash and short-term investments.
  • Repurchased $0.6 billion of common shares outstanding, bringing year-to-date repurchases to $1.1 billion.
  • Closed previously announced Alaska bolt-on acquisition on the Western North Slope.
  • In early July, announced several actions to accelerate the company’s disciplined plan and increase its low cost of supply resource base:
    • Expanded 2018 planned share repurchases by 50 percent to $3 billion and increased the total share repurchase authorization from $6 billion to $15 billion.
    • Agreed to acquire 39.2 percent interest in the Greater Kuparuk Area in Alaska and sell a subsidiary that will hold a 16.5 percent interest in the UK Clair Field, subject to regulatory approval.
    • Announced positive results from the 2018 six-well exploration and appraisal drilling program in Alaska.

In the Lower 48, production from the company’s Big 3 unconventional assets grew 37 percent year-over-year.