Conoco Tops Consensus

ConocoPhillips (COP Quote - Cramer on COP - Stock Picks) said its second-quarter earnings slipped 7.5% from a year ago, while revenue was essentially unchanged.

The company posted income, excluding extraordinary items, of $4.8 billion, or $2.90 a share, compared with $5.2 billion, or $3.09 a share, during the same period a year ago.

Although the latest results show a year-on-year decline, the results were well above the $2.68 analyst consensus determined in a survey by Thomson Financial.

The company generated revenue of $47.4 billion for the quarter as opposed to $47.1 billion during the second quarter of 2006.

Second-quarter net income after items was $301 million, or 18 cents a share. A $4.5 billion charge-off from Venezuela's expropriation of Conoco's oil projects there was responsible for the adjustment.

Although Conoco has officially walked away from its Venezuelan production assets, it is still negotiating for compensation. If negotiations fail, the matter will move to an international court of arbitration. That process could lead to Conoco taking control of one of Venezuela's valuable state-owned assets, such as a refinery.

After adjusting for the charge-off, Conoco's E&P segment had $2.1 billion in income in the second quarter, down from $2.3 billion in the first quarter and $3.3 billion in the same period a year earlier.

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