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ConocoPhillips (COP) Incurs Q1 Loss, Revenues Beat Estimates

Upstream energy player ConocoPhillips COP reported first-quarter 2017 adjusted loss of 2 cents per share that compared unfavorably with the Zacks Consensus Estimate of 1 cent. The quarterly loss, however, was narrower than the year-ago-quarter adjusted loss of 95 cents per share. Significantly low expenses as well as higher commodity price realizations led to the improvement, which was partially offset by normal field declines and dispositions.

Revenues of $7,771 million beat the Zacks Consensus Estimate of $7,473 million. The top line also improved from $5,015 million in the year-ago quarter.

Exploration and Production

Production from continuing operations averaged 1,593 million barrels of oil equivalent (MMBOE) in the quarter as against 1,578 MMBOE in the year-ago quarter. The increase was driven by production ramp up from several major projects, multiple development programs and improved well performance.

ConocoPhillips Price, Consensus and EPS Surprise


ConocoPhillips Price, Consensus and EPS Surprise | ConocoPhillips Quote

Price Realization

Average realized price for oil was $50.97 per barrel compared with $31.47 in the year-earlier quarter. Natural gas liquids were sold at $24.87 per barrel as against $12.30 a year ago. The price of natural gas was $3.84 per thousand cubic feet compared with $2.99 in first-quarter 2016.   


As of Mar 31, 2017, the company had total cash and cash equivalents of $3.1 billion and debt of $26.4 billion, with a debt-to-capitalization ratio of 42%. In the reported quarter, ConocoPhillips generated cash of $1.8 billion from operating activities. The company spent $948 million for capital expenditures and investments and paid dividends of $331 million.

Total Expense

The company reported expenses of $7.7 billion in the first quarter as against $7.2 billion in the January–March quarter of 2016.

Share Performance

The company’s price chart shows significant strength, year to date. During the aforesaid period, ConocoPhillips lost 5.3% compared with 12.2% decrease for the Zacks categorized Oil & Gas-Integrated industry.


ConocoPhillips' second-quarter 2017 production guidance is in the range of 1,495–1,535 MBOED, excluding production from Libya.

Zacks Rank

ConocoPhillips currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are SunCoke Energy, Inc. SXC, China Petroleum & Chemical Corporation SNP and Bellatrix Exploration Ltd. BXE. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SunCoke Energy posted a positive earnings surprise of 120.0% in the preceding quarter. It beat estimates in two of the four trailing quarters with an average negative earnings surprise of 35.78%.

Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.

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ConocoPhillips (COP): Free Stock Analysis Report
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