ConocoPhillips Reports Second-Quarter Earnings of $2.3 Billion or $1.80 Per Share
ConocoPhillips Reports Second-Quarter Earnings of $2.3 Billion or $1.80 Per Share Adjusted Earnings of $1.5 Billion or $1.22 Per Share
HOUSTON, July 25, 2012 – ConocoPhillips (NYSE: COP) today reported second-quarter 2012 earnings of $2.3 billion, or $1.80 per share, compared with second-quarter 2011 earnings of $3.4 billion, or $2.41 per share. The current quarter includes one month of downstream earnings related to discontinued operations associated with the April 30, 2012, spinoff of Phillips 66. Last year’s quarter included three months of downstream earnings.
Excluding special items of $732 million, second-quarter 2012 adjusted earnings were $1.5 billion, or $1.22 per share, compared with second-quarter 2011 adjusted earnings of $2.3 billion, or $1.64 per share. Special items for the current quarter include $534 million in earnings from discontinued operations and $285 million from gains on asset sales.
Second-Quarter Highlights •Completed spinoff of downstream businesses into Phillips 66. •Achieved production of 1.54 million BOE per day. •Continued progress on North American unconventional programs. •Progressed Australia Pacific LNG’s project with sanction of second train in early July. •Initiated drilling and acquired additional leases in deepwater Gulf of Mexico. •Completed disposition of Alba and Statfjord fields. •Repurchased 52 million ConocoPhillips shares, representing 4 percent of outstanding shares. •Paid quarterly dividend of 66 cents per share, consistent with pre-spinoff levels.
“We are off to a strong start as an independent E&P company and the business is running well,” said Ryan Lance, chairman and chief executive officer. “Our production was on target, our major growth projects are on track and we are continuing to add to our conventional and unconventional exploration inventory. We continue to progress our asset sales program, providing additional financial flexibility to fund our high-margin organic investments. We remain committed to growing our production by 3 to 5 percent, improving our financial returns and delivering a sector-leading dividend.”
The company completed the spinoff of its downstream businesses to stockholders on April 30, with the distribution of Phillips 66 (NYSE: PSX) common stock. Following completion of this transaction, ConocoPhillips is now the world’s largest independent exploration and production company, based on proved reserves and production of liquids and natural gas.
In the Lower 48 and Latin America segment, the company continues to advance several high-margin growth projects across its asset base. Ongoing ramp up of production from liquids-rich shale plays, including Eagle Ford and Bakken, delivered approximately 50,000 barrels of oil equivalent (BOE) per day more production for the quarter than a year ago. Based on positive results to date, the company has identified extensive development potential over the next several years and is directing additional investments to these projects.
In Canada, the company’s oil sands projects continued to perform well, with production growth from Christina Lake Phase C and Surmont Phase I resulting in increased bitumen production of 20,000 BOE per day compared to the second quarter of 2011. Additionally, Surmont Phase II development and further FCCL expansion phases are on schedule and will lead to further high-margin production growth over the next several years.
In the Asia Pacific and Middle East segment, Australia Pacific LNG sanctioned the second production train in July and signed project finance agreements during the second quarter. The development and