Summary
ConocoPhillips (COP) reported its first quarter 2013 results, highlighting its strategic transition into a pure exploration and production (E&P) company following the separation of its downstream businesses into Phillips 66 in 2012. The company generated $4.6 billion in cash from continuing operations, funded a $3.6 billion capital program, and paid $0.8 billion in dividends. Significant asset dispositions were underway, with approximately $1.1 billion generated in the quarter and an expected $8.5 billion from the planned sales of its interests in Kashagan, Nigeria, and Algeria. The company aims for 3-5% annual production and margin growth through portfolio optimization and investments in high-margin developments, focusing on liquids-rich plays. While overall earnings from continuing operations saw a slight decrease of 7% to $2.024 billion compared to Q1 2012, this was largely due to lower gains from asset sales and reduced commodity prices for crude oil, bitumen, and natural gas liquids. These were partially offset by significantly lower impairments ($1 million vs. $520 million) and higher natural gas prices. Production from continuing operations was 1,555 MBOED, with strong growth in North American shale plays (Eagle Ford, Bakken, Permian) and oil sands, which increased by 42% and 30% respectively year-over-year. Major projects are on schedule for fourth-quarter startup, and new discoveries were made in the Gulf of Mexico.
Financial Highlights
42 data points| Revenue | $14.17B |
| SG&A Expenses | $165.00M |
| Operating Expenses | $10.86B |
| Operating Income | $2.01B |
| Net Income | $2.14B |
| EPS (Basic) | $1.74 |
| EPS (Diluted) | $1.73 |
| Shares Outstanding (Basic) | 1.23M |
| Shares Outstanding (Diluted) | 1.24M |
Key Highlights
- 1Generated $4.6 billion in cash from continuing operations, demonstrating strong operational cash flow.
- 2Successfully advanced its asset disposition program, generating $1.1 billion in proceeds during the quarter and anticipating an additional $8.5 billion from upcoming sales.
- 3Achieved significant production growth in key North American shale plays (Eagle Ford, Bakken, Permian) of 42% and 30% increase in oil sands production year-over-year.
- 4Reported a substantial decrease in impairments to $1 million (after-tax) in Q1 2013 from $520 million (after-tax) in Q1 2012, significantly boosting profitability.
- 5Planned major project startups are on schedule for the fourth quarter of 2013.
- 6Announced new deepwater discoveries (Coronado and Shenandoah) in the Gulf of Mexico, bolstering the exploration portfolio.