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ConocoPhillips (COP - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.98, which missed the Zacks Consensus Estimate of $2.06. The bottom line, however, increased from the prior-year quarter’s level of $1.84.
One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $14.1 billion increased from $12.9 billion in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $15.1 billion.
The lower-than-expected quarterly earnings were offset by higher oil equivalent production volumes and higher average realized oil equivalent prices. The positives, however, were partially counterbalanced by increased total costs and expenses.
Total production averaged 1,945 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,805 MBoe/d. The metric also beat our estimate of 1,927.5 MBoe/d. Of the total output, almost 50% was crude oil. Overall production was higher than the year-ago period’s level, primarily due to increased production in the Lower 48 and Canada.
Crude oil production increased to 955 thousand barrels per day (MBbls/d) from the year-ago quarter’s 931 MBbls/d. The figure also beat our estimate of 943.5 MBbls/d.
Natural gas liquids production totaled 295 MBbls/d, higher than the year-ago period’s 283 MBbls/d. Bitumen production for the quarter totaled 133 MBbls/d, up from 66 MBbls/d in the year-ago quarter.
The company’s natural gas production was 3,370 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,147 MMcf/d.
Realized Prices
The average realized oil equivalent price increased to $56.56 per barrel from the year-ago level of $54.50.
The average realized crude oil price was $81.30 per barrel, implying an increase from the year-ago figure of $74.19. The metric was below our projection of $83.44 per barrel.
The average realized natural gas price was $4.22 per thousand cubic feet, down from $5.04 reported in the year-ago quarter. Realized natural gas liquids price increased to $22.60 per barrel from the year-ago quarter’s $20.72.
Total Expenses
Total expenses increased to $10.5 billion from $9.5 billion in the corresponding period of 2023. The figure was below our projection of $10.8 billion. The cost of purchased commodities rose to $4.9 billion from $4.6 billion reported a year ago.
Exploration costs escalated to $102 million from $83 million in the comparable period of 2023.
Balance Sheet & Capital Spending
As of Jun 30, 2024, ConocoPhillips had $4.3 billion in cash and cash equivalents. The company had a total long-term debt of $17.04 billion and a short-term debt of $1.3 billion as of the same date.
Capital expenditure and investments totaled $2.97 billion. Net cash provided by operating activities was $4.9 billion.
Guidance
For the third quarter of 2024, COP expects production to be in the range of 1.87-1.91 MBoe/d. Full-year 2024 production is expected to be in the band of 1.93-1.94 MBoe/d compared with the prior guidance of 1.91-1.95 MBoe/d.
Full-year capital expenditures are now anticipated to be $11.5 billion compared with the previously guided range of $11.0-$11.5 billion. This is due to strong progress on Willow and increased Lower 48 partner-operated activity.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Baker Hughes, a leading player in the oilfield service sector, is known for its advanced technologies and equipment catering to the needs of upstream companies. The company expects substantial growth from LNG contracts globally due to the strong demand outlook.
The Zacks Consensus Estimate for BKR’s 2024 EPS is pegged at $2.15. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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ConocoPhillips (COP) Q2 Earnings Miss, Revenues Increase Y/Y
ConocoPhillips (COP - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.98, which missed the Zacks Consensus Estimate of $2.06. The bottom line, however, increased from the prior-year quarter’s level of $1.84.
One of the world’s leading independent oil and gas producers, headquartered in Houston, TX, ConocoPhillips’ quarterly revenues of $14.1 billion increased from $12.9 billion in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $15.1 billion.
The lower-than-expected quarterly earnings were offset by higher oil equivalent production volumes and higher average realized oil equivalent prices. The positives, however, were partially counterbalanced by increased total costs and expenses.
ConocoPhillips Price, Consensus and EPS Surprise
ConocoPhillips price-consensus-eps-surprise-chart | ConocoPhillips Quote
Production
Total production averaged 1,945 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,805 MBoe/d. The metric also beat our estimate of 1,927.5 MBoe/d. Of the total output, almost 50% was crude oil. Overall production was higher than the year-ago period’s level, primarily due to increased production in the Lower 48 and Canada.
Crude oil production increased to 955 thousand barrels per day (MBbls/d) from the year-ago quarter’s 931 MBbls/d. The figure also beat our estimate of 943.5 MBbls/d.
Natural gas liquids production totaled 295 MBbls/d, higher than the year-ago period’s 283 MBbls/d. Bitumen production for the quarter totaled 133 MBbls/d, up from 66 MBbls/d in the year-ago quarter.
The company’s natural gas production was 3,370 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,147 MMcf/d.
Realized Prices
The average realized oil equivalent price increased to $56.56 per barrel from the year-ago level of $54.50.
The average realized crude oil price was $81.30 per barrel, implying an increase from the year-ago figure of $74.19. The metric was below our projection of $83.44 per barrel.
The average realized natural gas price was $4.22 per thousand cubic feet, down from $5.04 reported in the year-ago quarter. Realized natural gas liquids price increased to $22.60 per barrel from the year-ago quarter’s $20.72.
Total Expenses
Total expenses increased to $10.5 billion from $9.5 billion in the corresponding period of 2023. The figure was below our projection of $10.8 billion. The cost of purchased commodities rose to $4.9 billion from $4.6 billion reported a year ago.
Exploration costs escalated to $102 million from $83 million in the comparable period of 2023.
Balance Sheet & Capital Spending
As of Jun 30, 2024, ConocoPhillips had $4.3 billion in cash and cash equivalents. The company had a total long-term debt of $17.04 billion and a short-term debt of $1.3 billion as of the same date.
Capital expenditure and investments totaled $2.97 billion. Net cash provided by operating activities was $4.9 billion.
Guidance
For the third quarter of 2024, COP expects production to be in the range of 1.87-1.91 MBoe/d. Full-year 2024 production is expected to be in the band of 1.93-1.94 MBoe/d compared with the prior guidance of 1.91-1.95 MBoe/d.
Full-year capital expenditures are now anticipated to be $11.5 billion compared with the previously guided range of $11.0-$11.5 billion. This is due to strong progress on Willow and increased Lower 48 partner-operated activity.
Zacks Rank and Key Picks
Currently, COP carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Sunoco LP (SUN - Free Report) , SM Energy Company (SM - Free Report) and Baker Hughes Company (BKR - Free Report) . While Sunoco and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, Baker Hughes carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Baker Hughes, a leading player in the oilfield service sector, is known for its advanced technologies and equipment catering to the needs of upstream companies. The company expects substantial growth from LNG contracts globally due to the strong demand outlook.
The Zacks Consensus Estimate for BKR’s 2024 EPS is pegged at $2.15. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.