ConocoPhillips reported a US$1 billion loss in Q3 2016, along with plans to reduce its capital expenditures.
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ConocoPhillips headquarters, from ConocoPhillips. |
Although the Q3 loss for ConocoPhillips was big, it was still less when compared to Q3 2015’s net loss of $1.1 billion, marking a 9% difference.
When looking a the nine-month 2016 earnings, ConocoPhillips saw a net loss of $3.6 billion in its earnings, a 72% difference compared to 2015’s $1 billion loss.
“Our underlying business performance is delivering strong momentum as we head into 2017,” said Ryan Lance, ConocoPhillips chairman and CEO. “In the third quarter we achieved cash flow neutrality, with operating cash flow covering capital expenditures and the dividend. For the second quarter in a row, we are lowering 2016 guidance on our capital expenditures and adjusted operating costs, while increasing our 2016 production guidance.”
Guidance for capital expenditures has been lowered to $5.2 billion versus prior guidance of $5.5 billion. The company’s other guidance items remain unchanged, ConocoPhillips said.
Production for Q3 2016 was nearly 1.6 MMboe/d, an increase of 3000 boe/d compared with the same period a year ago.
The increase was the result of growth from major projects and development programs, improved well performance and lower planned downtime, partly offset by normal field decline and dispositions, the company said.
Production for the first nine months of 2016 was 1.56 MMboe/d, compared with 1.586 MMboe/d for the same period in 2015. ConocoPhillips said production decreased due to normal field decline and dispositions, partly offset by new production from major projects and development programs as well as improved well performance.
During the period, the US independent also noted a terminated contract of a deepwater drillship in the Gulf of Mexico.
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