Oppenheimer now says 2015 eps is 9 CENTS= p/e of 500 !
and... LAUGH OF THE DAY= Conoco says 2016 eps $1.21
Haaretz reports that Iran has been hiding millions of barrels of oil it never reported to the United States or in the world oil market, according to a company that has developed sophisticated maritime tracking technology. With the world’s fourth-largest oil reserves, Iran denies it’s storing oil at sea, despite reports that surfaced in The New York Times as early as 2012; but Ami Daniel, Windward founder and cochairman, shows "the Iranians are taking huge, 280-meter-long ships and filling them with oil, to sit at sea and wait. Because the sanctions allow for production of only three million barrels a day, they began storing the remainder... oil tankers have been sitting in the Gulf for anywhere between three and six months, just waiting for orders."
full year 2015 eps lowered to 9 CENTS, p/e is now 500 !
Despite reductions in cost including capital expenditure (CAPEX) the firm expects a cash flow shortfall of $5.2 billion in the current year, and $1.3 billion next year, based on the current price environment. Oppenheimer estimates that ConocoPhillips needs a price of $90 per barrel oil, to finance its dividend and CAPEX, which is currently a top priority for the company.
Iran has 51 MIL BARRELS FLOATING, 2 mil brl tanker is due to arrive in Asia soon as initial export
and that might be with an early winter. Negative cashflow of $3.5bil for 1st half of yr, after capex and dividend. They will BORROW/ or cut dividend without oil $65
with $21.1bil in debt, they will have to borrow to pay the dividend eventually, CEO begging not to sell was pathetic.
last 5 weeks have seen a 36 rig rise - the biggest such rise since April 2014
*u.s. Oil rig count up 5 to 664, baker hughes says
He cuts another $500mil from capex. Why? To pay $400mil termination fee to Ensco. Is it his job to BORROW to pay dividend? S&P says need $65 ave oil by 2017 or dividend can't be paid without borrowing or dumping (pillaging) more assets. How many millions they pay this guy? 25? 50?
The three-year contract the company cancelled with Ensco PLC (NYSE: ESV) for a drillship. According to Ensco, Conoco is obligated to pay Ensco the operating day rate of the drillship monthly for two years. The day rate of Ensco’s DS-9 drillship is approximately $550,000 a day. That works out to $16.5 million a month, $198 million per year, or $396 million for the two-year period.
Conoco said that details of the termination are under discussion but that the company expects to take a charge in the third quarter as a result. In the first quarter of this year, ConocoPhillips posted net income of $272 million, so a charge of $200 million to $400 million is not trivial.
Conoco's loss in the second quarter was $179 million, or 15 cents per share, compared with a profit of $2.1 billion, or $1.67 per share in the same quarter a year earlier.
Conoco yield accompanies a more than 71% payout ratio. Put another way, COP is paying out a tremendous amount of net income in the form of cash dividends to shareholders.
Horizontal shale gas plays added 8 rigs. That is as out-of-touch as the tight oil rig additions since gas prices averaged only $2.75 in the second quarter of 2015 (Figure 3) and are almost half of what they were in the first quarter of 2014.
The last time the rig count increased this much was the week ending August 8, 2014 when WTI was $98 and Brent was $103 per barrel.