Drop in 4Q earnings reported by ConocoPhillips


ConocoPhillips reported a drop in fourth-quarter 2019 earnings while full-year earnings increased.

For the quarter, the company said earnings were $0.7 billion or 65-cents a share, down from the $1.98 billion and $1.61 per share earnings reported n the fourth quarter of 2018.

Adjusted fourth-quarter 2019 earnings were $0.8 billion or 76-cents a share, down from the fourth-quarter 2018 adjusted earnings of $1.3 billion and $1.13 a share.

Full-year 2019 earnings were $7.2 billion, or $6.40 per share, compared with full-year 2018 earnings of $6.3 billion, or $5.32 per share. Excluding special items, full-year 2019 adjusted earnings were $4.0 billion, or $3.59 per share, compared with full-year 2018 adjusted earnings of $5.3 billion, or $4.54 per share.

The company reported its full-year production, excluding Libya was 1,305 MBOED which was 5 percent more than a year ago. Lower 48 production grew by 22 percent.

Cash from operating activities totaled $11.1 billion while free cash flow was more than $5 billion. ConocoPhillips also increased its quarterly dividend by 38 percent to 42 cents a share.

The company ended 2019 with $2.3 billion in reduced asset retirement obligations and with cash, cash equivalents and restricted cash totaling $5.4 billion.

“Strong 2019 performance capped off a highly successful three-year period in which we transformed our business model and significantly improved our underlying performance drivers across the company,” said Ryan Lance, chairman and chief executive officer.

He said the company is in strong position to deliver even through prices cycles, largely due to a strong balance sheet and a focus on free cash flow generation.

” We have laid out a powerful 10-year plan based on our formula for value creation and we look forward to successfully delivering that plan in the quarters and years ahead.”

The company also announced that the Board of Directors approved a $10 billion increase in the existing share repurchase program to $25 billion.

Preliminary 2019 year-end proved reserves are approximately 5.3 billion barrels of oil equivalent (BOE), with total reserve replacement of 100 percent, including a net decrease of approximately 0.1 billion BOE from closed dispositions related largely to the United Kingdom divestiture.

As for what to expect in 2019, the company’s 2020 operating plan capital guidance is $6.5 billion to $6.7 billion. The plan includes funding for ongoing development drilling programs, major projects, exploration and appraisal activities, as well as base maintenance.

Capital spend is expected to be higher in the first quarter largely from winter construction and exploration and appraisal drilling in Alaska. Guidance does not include capital for acquisitions.

Source: ConocoPhillips announcement