This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ConocoPhillips Disappoints Itself, Shares Slip

NEW YORK ( TheStreet) -- ConocoPhillips (COP - Get Report) reported a production decline in the first quarter from the year ago period, and said that both its exploration and production (E&P) and refining and marketing (R&M) businesses fell short of expectations, even as rising oil prices buoyed profits. The commentary from ConocoPhillips CEO James Mulva which accompanied the earnings expressed disappointment in the results. The company said higher commodity prices and global refining margins were the primary factors for the increase in earnings.

ConocoPhillips shares were down 2% in early trading on Wednesday.

ConocoPhillips earned $2.6 billion in the first quarter on an adjusted basis, a rise from $2.1 billion in the year ago period. Earnings per share of $1.82 were short of the Wall Street estimate of $1.97. On a non-adjusted basis, earnings were $3 billion, or $2.09 per share.

ConocoPhillips has benefitted, like all oil companies, from rising oil prices and a recent surge in refinery margins as the spread between WTI crude and Brent crude widened.

"While our financial results were much improved from a year ago, E&P production and R&M capacity utilization did not meet our targets," said ConocoPhillips CEO Jim Mulva in the earnings release. "The quarter was negatively impacted by approximately $200 million from unplanned downtime and from variable compensation expense related to prior-year performance."

ConocoPhillips exploration and production adjusted earnings were higher than the year ago period, but primarily due to higher prices.

The issue of replacing lost production has been highlighted as a key issue. All major oil companies have as a No. 1 priority replacing production over the long-term.

On Wednesday, BP (BP - Get Report) reported replacement cost profit that slipped 2% year over year after having sold off more than $24 billion in assets in response to oil spill liabilities.

ConocoPhillips production for the first quarter of 2011 was 1.7 million barrels of oil equivalent (BOE) per day, a decrease of about 125,000 BOE per day versus the same period in 2010.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BP $32.56 -3.20%
COP $45.09 -3.80%
CVX $101.35 -1.90%
XOM $88.12 -1.10%
AAPL $95.18 1.60%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs