ConocoPhillips Doubles 1Q Earnings
US major ConocoPhillips said April 30 its 1Q earnings for this year doubled from a year ago, to $1.8bn from $900mn, while adjusted earnings – excluding special items – were unchanged at $1.1bn.
Special items included an unrealized gain on its investment in Cenovus Energy, the recognition of deferred revenue and amounts recognised from the PDVSA International Chamber of Commerce settlement.
Cash flow from operating activities increased to $2.9bn from $2.4bn in 1Q 2018, while capital expenditures and investments edged slightly higher, to $1.64bn from $1.54bn. About half those expenditures – about $834mn – were focused in the Lower 48 US, where ConocoPhillips grew production from its “Big 3” unconventional plays – Eagle Ford, Permian and Bakken – by 30%, compared to 1Q 2018.
Total production increased to 1.36mn boe/day in 1Q 2019 from 1.27mn boe/day in 1Q 2018. Natural gas production increased modestly, to 2.84bn ft3/day from 2.83bn ft3/day, with increases in Norway, Indonesia and Malaysia offset by reduced production in Australia/Timor-L’este and from equity affiliates. Lower 48 gas output was unchanged at 568mn ft3/day.
Subsequent to 1Q 2019, ConocoPhillips reached an agreement to sell its assets in the UK to privately-held Chrysaor Holdings and closed the sale of its 30% interest in Timor-L’este’s Greater Sunrise fields to the government of Timor-L’este.