Summary
ConocoPhillips reported a net income of $420 million for the third quarter of 2017, a significant turnaround from the $1,040 million net loss in the same period of 2016. This improvement was driven by higher commodity prices, substantial gains from asset dispositions totaling over $16 billion in 2017, and disciplined cost management. The company has made considerable progress on its strategic priorities, including debt reduction to below $20 billion by year-end 2017 and a planned $3 billion in share repurchases for the year. The nine-month period ending September 30, 2017, however, still reflects a net loss of $2,434 million. This is largely attributable to significant impairment charges, including a $2.4 billion impairment of the APLNG investment and a combined $2.5 billion impairment for the San Juan Basin and Barnett assets. Despite these non-recurring charges, the underlying operational performance and the successful execution of its asset portfolio optimization strategy indicate a positive trajectory for the company.
Financial Highlights
46 data points| Revenue | $6.69B |
| Cost of Revenue | $2.93B |
| Gross Profit | $3.76B |
| SG&A Expenses | $110.00M |
| Operating Expenses | $6.54B |
| Net Income | $420.00M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 1.21M |
| Shares Outstanding (Diluted) | 1.22M |
Key Highlights
- 1ConocoPhillips returned to profitability in Q3 2017, reporting a net income of $420 million, a substantial improvement from a net loss of $1,040 million in Q3 2016.
- 2The company completed significant asset dispositions totaling over $16 billion in 2017, including the sale of Canadian assets to Cenovus Energy and the San Juan Basin and Panhandle assets.
- 3Debt has been significantly reduced, with the company on track to be below $20 billion by year-end 2017, down from $27.3 billion at the end of 2016.
- 4Share repurchases are proceeding aggressively, with plans to repurchase $3 billion in 2017, and $2.2 billion already repurchased by September 30, 2017.
- 5Despite strong Q3 performance, the nine-month period resulted in a net loss of $2,434 million, largely due to substantial impairment charges on assets like APLNG and others in the Lower 48 segment.
- 6Production, excluding Libya, was 1,202 thousand barrels of oil equivalent per day (MBOED) in Q3 2017, showing a 1.4% underlying year-over-year growth on a debt-adjusted share basis.
- 7Capital expenditures for full-year 2017 were lowered to $4.5 billion, reflecting disciplined capital allocation.