ConocoPhillips Losses Widen in Q4

US major ConocoPhillips has reported a $772mn net loss for the fourth quarter, compared with a $450mn loss in the previous three months and a $743mn profit in Q4 2019.

The widened loss came on the back of $869mn in impairments. Excluding these charges and other special items, the company's loss was $201mn, versus $331mn in Q3 2020 and a $831mn profit in Q4 2019. Quarter on quarter, ConocoPhillips gained from a 7% increase in oil prices and a rebound in production excluding Libyan contributions to 1.144mn barrels of oil equivalent/day, from 1.07mn boe/d. Full-year production is expected to average 1.118mn boe/d.

ConocoPhillips, which completed the $9.7bn takeover of Concho Resources in January, has set its capital spending plan for 2021 at $5.5bn, some $5.1bn of which will go towards maintaining current production. The rest will go on major projects mainly in Alaska, and ongoing exploration appraisal activity.

"As we enter 2021, our ability to lead the sector in value creation is enhanced by the recent Concho acquisition that creates a best-in-class competitor of scale to thrive in the new energy future," CEO Ryan Lance said. Concho operates in the Midland and Delaware sub-basins of the Permian and lifted 331,000 boe/d of hydrocarbons in 2019.