Yahoo Finance ConocoPhillips (COP) Q1 Earnings Beat Estimates on Production
ConocoPhillips COP reported first-quarter 2023 adjusted earnings per share of $2.38, beating the Zacks Consensus Estimate of $2.02. The bottom line, however, declined from the prior-year quarter’s $3.27 per share.
One of the world’s leading independent oil and gas producers headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $15,517 million decreased from the first-quarter 2022 figure of $19,291 million. But, the top line beat the Zacks Consensus Estimate of $15,312 million.
Better-than-expected quarterly earnings resulted from higher oil equivalent production. This was partially offset by lower prices.
Production
Total production averaged 1,792 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,747 MBoe/d. Of the total output, 52.3% was crude oil. Overall production was higher than the year-ago period, primarily due to the increased production in the Lower 48.
ConocoPhillips’ crude oil production was 937 thousand barrels per day (MBbls/d), higher than the year-ago quarter’s 915 MBbls/d. Production of natural gas liquids totaled 271 MBbls/d, higher than the year-ago period’s 223 MBbls/d. Bitumen production for the quarter was 69 MBbls/d, up from 67 MBbls/d. However, the company’s natural gas production was 3,088 million cubic feet per day (MMcf/d), lower than the year-ago level of 3,253 MMcf/d.
Realized Prices
Average realized oil equivalent prices declined to $60.86 per barrel from the year-ago level of $76.99.
The average realized crude oil price for the first quarter was $77.65 per barrel, reflecting a decrease from the year-ago figure of $94.82. The average realized natural gas price was $7.30 per thousand cubic feet, down from $8.83. Realized natural gas liquids price was $25.84 per barrel, lower than the year-ago quarter’s $41.80.
Total Expenses
ConocoPhillips’ first-quarter total expenses declined to $10,955 million from $11,393 million in the corresponding period of 2022.
Production and operating expenses rose to $1,779 million in the reported quarter from $1,581 million a year ago. The cost of purchased commodities fell to $6,138 million from $6,751 million. Exploration costs increased to $138 million in the March quarter of 2023 from $69 million in the comparable period of 2022.
Balance Sheet & Capital Spending
As of Mar 31, 2023, ConocoPhillips had $6,974 million in cash and cash equivalents. The company had a total long-term debt of $15,266 million. At the first-quarter end, the company had short-term debt of $1,317 million.
Capital expenditure and investments totaled $2,897 million. Net cash provided by operating activities was $5,403 million.
Guidance
ConocoPhillips projects production for the June quarter at 1.77 to 1.81 MMBoE/D. The company’s new production guidance for this year is 1.78 to 1.80 MMBoE/D.
Zacks Rank & Stocks to Consider
Currently, Antero Resources carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Marathon Petroleum Corporation MPC, Sunoco LP SUN and Cactus, Inc. WHD. While Marathon Petroleum carries a Zacks Rank #2 (Buy), Sunoco and Cactus sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum operates the largest refining system in the nation. In the past seven days, MPC has witnessed upward earnings estimate revisions for 2023.
Sunoco has a stable business model while distributing motor fuel to approximately 10,000 convenience stores. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.
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