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.
Almost $500 BILLION margin, DEBT to buy stocks a record in all history of this casino, is now unraveling, COME TO JESUS, Sheeple, it was NEVER ABOUT FUNDAMENTALS
CEO threw u a penny-bone, like a dog u got a #$%$ then lost another 10+%, will he throw u some more bones?
or lose your #$%$
BROKE big 'ol massive head & shoulders that began mid 2013! measure it and weep (longs)
Sentiment: Strong Sell
Increase 4 weeks in a row! Fruckers are NOT shutting in to pay interest to banksters on bad loans