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Dec 31, 2020
ConocoPhillips Q4 2020 Earnings Report
ConocoPhillips reported a net loss and adjusted loss in Q4 2020, impacted by lower realized prices and reduced volumes, but remained committed to free cash flow generation and strategic portfolio enhancements.
Key Takeaways
ConocoPhillips reported a net loss of $0.8 billion, or ($0.72) per share, in Q4 2020, compared to earnings of $0.7 billion, or $0.65 per share, in Q4 2019. Adjusted loss was $0.2 billion, or ($0.19) per share, versus adjusted earnings of $0.8 billion, or $0.76 per share, in the prior year. The results were affected by lower realized prices and reduced production volumes, but the company emphasized its commitment to free cash flow and value creation.
Reported a fourth-quarter 2020 loss of $0.8 billion, or ($0.72) per share.
Adjusted fourth-quarter 2020 earnings were a loss of $0.2 billion, or ($0.19) per share.
Production excluding Libya for the fourth quarter of 2020 was 1,144 MBOED.
The company’s total average realized price was $33.21 per BOE, 29 percent lower than the $47.01 per BOE realized in the fourth quarter of 2019.
ConocoPhillips
ConocoPhillips
Forward Guidance
ConocoPhillips expects to provide additional guidance in March but is providing an outlook for expected combined company operating plan capital and annual production volumes at this time. The company has set a 2021 operating plan capital budget of $5.5 billion. This includes $5.1 billion to sustain current production and $0.4 billion for investment in major projects, primarily in Alaska, in addition to ongoing exploration appraisal activity. The operating plan capital budget of $5.5 billion is expected to maintain flat production as compared to 2020 pro forma production of approximately 1.5 million BOED.
Positive Outlook
- Industry fundamentals have strengthened off the 2020 lows.
- Setting a sustaining capital program for 2021.
- Demonstrates commitment to free cash flow generation.
- Creates flexibility to return additional capital to shareholders at higher prices.
- Comprehensive integration and optimization efforts across every part of our business.
Challenges Ahead
- The 2020 results discussed herein reflect the performance of ConocoPhillips prior to the acquisition of Concho, which closed in January 2021.
- Fourth-quarter 2020 earnings were a loss of $0.8 billion, or ($0.72) per share.
- Excluding special items, fourth-quarter 2020 adjusted earnings were a loss of $0.2 billion, or ($0.19) per share
- Production excluding Libya for the fourth quarter of 2020 was 1,144 thousand barrels of oil equivalent per day (MBOED), a decrease of 145 MBOED from the same period a year ago.
- Final information related to the company’s 2020 oil and gas reserves, as well as costs incurred, will be provided in ConocoPhillips’ Annual Report on Form 10-K, to be filed with the SEC in February.