ConocoPhillips To Seek Buyer For Stake In Indonesian Assets
Aug 11 15
ConocoPhillips (NYSE:COP) is reviewing its portfolio in Indonesia and may soon seek buyers for a stake in a production sharing block it operates in the Natuna Sea, company and government sources said. ConocoPhillips holds a 40% interest in South Natuna Sea Block B.
ConocoPhillips Seeks Buyer For Indonesian Assets
Aug 7 15
ConocoPhillips (NYSE:COP) is seeking a buyer for its offshore Indonesian oil and gas block along with the transportation system and the onshore receiving facility, but says the move is not a response to low oil prices. The decision does not represent an exit from the country, as it is continuing operations in the Corridor Block in South Sumatra and recently was awarded another block in Kalimantan.
ConocoPhillips Reports Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Production Guidance for the Third Quarter and Full Year of 2015; Revises Financial Guidance for the Full Year of 2015; Reports Impairment Charge for the Second Quarter Ended June 30, 2015
Jul 30 15
ConocoPhillips reported earnings and production results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported net loss of $179 million, or $0.15 per share, compared with second-quarter 2014 earnings of $2.1 billion, or $1.67 per share. Adjusted earnings were $81 million, or $0.07 per share, compared with second-quarter 2014 adjusted earnings of $2.0 billion, or $1.61 per share. Adjusted earnings were lower compared with second-quarter 2014 primarily due to lower realized prices, partially offset by higher licensing revenues. The company’s total realized price was $39.09 per barrel of oil equivalent (BOE), compared with $70.17 per BOE in the second quarter of 2014, reflecting lower average realized prices across all commodities. Cash provided by continuing operating activities was $2.0 billion. The company funded $2.4 billion in capital expenditures and investments.
For the six months, the company’s earnings were $93 million, or $0.07 per share, compared with six-month 2014 earnings of $4.2 billion, or $3.38 per share. Adjusted earnings were a net loss of $141 million, or $0.11 per share, compared with six-month 2014 adjusted earnings of $4.3 billion, or $3.42 per share. Cash provided by continuing operating activities was $4.0 billion. Additionally, the company funded $5.7 billion in capital expenditures and investments.
The company’s production from continuing operations, excluding Libya, for the second quarter of 2015 was 1,595 MBOED, an increase of 39 MBOED compared with 1.56 MBOED in the second quarter of 2014. The growth of 4% or 69,000 BOE per day, which came primarily from liquids and from domestic gas sales of APLNG, which will turn to LNG over time. The net increase reflects 69 MBOED, or 4% growth, after adjusting for 30 MBOED from dispositions and downtime. Growth was primarily due to new production from major projects and development programs, partially offset by normal field decline and downtime.
The company’s production from continuing operations, excluding Libya, for the first six months of 2015 was 1,603 MBOED, compared with 1,543 MBOED for the same period in 2014. Production increased due to new production from development programs and major projects, partially offset by normal field decline.
The company provides earnings guidance for the third quarter and full year of 2015. For the year 2015, the company is on track to achieve the higher end of its 2015 production target of 2% to 3% growth compared with 2014 production from continuing operations, excluding Libya. The company has reduced its 2015 capital expenditures guidance from $11.5 billion to $11.0 billion. Guidance for operating costs has been reduced from $9.2 billion to $8.9 billion. Guidance for depreciation, depletion and amortization of $9.0 billion. At year end 2014, the company also slashed its 2015 capital budget by 20% to $13.5 billion compared with 2014's capital expenditure plans.
Third-quarter 2015 production, excluding Libya, is expected to be 1,510 to 1,550 MBOED, which reflects planned turnaround activity during the quarter.
The company reported impairment charge for the second quarter of 2015. For the period, the company reported impairment charge of $140 million compared to $109 million a year ago.