ConocoPhillips reported second-quarter 2019 earnings of $1.6 billion, or $1.40 per share, compared with second-quarter 2018 earnings of $1.6 billion, or $1.39 per share. Excluding special items, second-quarter 2019 adjusted earnings were $1.1 billion, or $1.01 per share, compared with second-quarter 2018 adjusted earnings of $1.3 billion, or $1.09 per share.
The company stated that cash provided by the operating activities totaled $2.9 billion and it increased its 2019 planned share repurchases to $3.5 billion. During the quarter, the company repurchased $1.2 billion of shares and paid $0.3 billion in dividends.
Excluding special items, adjusted earnings were lower compared with second-quarter 2018 due to lower realized prices, partially offset by higher volumes. Sales volumes for the quarter were lower than production, reducing earnings by $32 million. The company’s total realized price was $50.50 per barrel of oil equivalent (BOE), compared with $54.32 per BOE in the second quarter of 2018, reflecting the impact of lower marker prices.
As for oil production, the second quarter total exceeded the high end of guidance and the year-over-year production grew by 4 percent overall.
“This was our seventh consecutive quarter of generating free cash flow while executing our disciplined plans and delivering on our targets,” said Ryan Lance, chairman and chief executive officer. “Over that time frame we fully funded our capital expenditures, dividends and buybacks within cash from operations.”
He said the company intends at its Analyst and Investor Meeting in November to lay out a plan demonstrating the company’s ability to perform on this model for the long term.
Production excluding Libya for the second quarter of 2019 was 1,290 thousand barrels of oil equivalent per day (MBOED), an increase of 79 MBOED compared with the same period a year ago.
ConocoPhillips’ six-month 2019 earnings were $3.4 billion, or $3.00 per share, compared with six-month 2018 earnings of $2.5 billion, or $2.13 per share. Six-month 2019 adjusted earnings were $2.3 billion, or $2.01 per share, compared with six-month 2018 adjusted earnings of $2.4 billion, or $2.05 per share.
In the first half of 2019, cash provided by operating activities was $5.8 billion. Excluding a $0.6 billion change in operating working capital, ConocoPhillips generated $6.4 billion in CFO, exceeding the total of $3.4 billion in capital expenditures and investments, $2.0 billion in share repurchases and $0.7 billion in dividends. In addition, the company generated $0.7 billion in disposition proceeds. Capital expenditures and investments included approximately $0.1 billion primarily for Lower 48 bolt-on acquisitions.
Operating plan capital is now expected to be $6.3 billion versus $6.1 billion, attributable to additional exploration and appraisal drilling in Alaska and the addition of a drilling rig in the Eagle Ford Field at mid-year. This guidance excludes approximately $0.3 billion for opportunistic acquisitions completed or announced. Guidance also excludes obligations under the recently announced production sharing contract extension awarded by the Government of Indonesia.