Summary
ConocoPhillips' third-quarter 2014 report (ending September 30) shows a decline in net income attributable to common shareholders to $2.704 billion, down from $2.480 billion in the same period last year. This decrease was primarily driven by lower gains on dispositions, decreased crude oil prices, and higher operating expenses and impairments. Despite these challenges, the company reported a 4% year-over-year increase in production from continuing operations (excluding Libya) and a 5.8% increase in its quarterly dividend. The company generated substantial operating cash flow, enabling continued investment in capital expenditures and shareholder returns. The nine-month period ending September 30, 2014, also reflected a decline in net income attributable to common shareholders to $6.908 billion from $6.669 billion in the prior year, despite an increase in operating cash flows. Key factors influencing the results include significant capital expenditures, asset dispositions, and strategic focus on higher-margin developments. The company continues to navigate volatile commodity prices and global economic conditions while maintaining its commitment to delivering production and cash margin growth.
Financial Highlights
42 data points| Revenue | $12.08B |
| SG&A Expenses | $203.00M |
| Operating Expenses | $10.36B |
| Operating Income | $5.78B |
| Net Income | $2.70B |
| EPS (Basic) | $2.18 |
| EPS (Diluted) | $2.17 |
| Shares Outstanding (Basic) | 1.24M |
| Shares Outstanding (Diluted) | 1.25M |
Key Highlights
- 1Net income attributable to ConocoPhillips was $2.704 billion for Q3 2014, an increase from $2.480 billion in Q3 2013, though the report also indicates a decrease in earnings from continuing operations.
- 2Sales and other operating revenues decreased by 11% to $12.080 billion in Q3 2014 compared to $13.643 billion in Q3 2013.
- 3The company completed the sale of its Nigerian upstream business in Q3 2014 for net proceeds of $1.4 billion.
- 4Production from continuing operations (excluding Libya) increased by 4% year-over-year when adjusted for downtime.
- 5Capital expenditures and investments for continuing operations were $12.729 billion for the nine months ended September 30, 2014, an increase from $11.281 billion in the prior year.
- 6The quarterly dividend was increased by 5.8% to $0.73 per share in July 2014.
- 7The company is expecting a one-time after-tax charge of approximately $520 million related to the termination of its agreement with Freeport LNG, expected to result in annual operating cost savings of $50-$60 million.