This Day On The Street
Continue to site
ADVERTISEMENT
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

Unplanned E&P downtime, primarily from the temporary shutdown of the Trans Alaska Pipeline System in January, a supply vessel collision with the company's Britannia platform and civil unrest in Libya, hit ConocoPhillips production at the level of 65,000 BOE per day. Asset sales made in 2010 and the first quarter also reduced production by approximately 50,000 BOE per day.

The company said that the unplanned E&P downtime of approximately 65,000 BOE per day reduced earnings for the quarter by about $100 million.

Replacing lost production is a key measure for all oil companies and ConocoPhillips CEO Mulva stressed amid the disappointments, "Consistent with our strategy, we continue to build our Exploration portfolio of high-impact drillable prospects and expand our positions in world-class shale opportunities."

While refining profits were up from $21 million to $480 million year over year, CEO Mulva noted, "While we had significant improvement in earnings from our downstream business, we did not capture all the market opportunities available to us due to downtime at several refineries." The U.S. refining crude oil capacity utilization rate was 87% and the international rate was 96% in the quarter.

"For the quarter, earnings would have been about $50 million higher if we had operated our U.S. downstream at planned levels," the ConocoPhillips CEO said.

ConocoPhillips repurchased 21 million of its own shares for $1.6 billion in the quarter, and recently increased the quarterly dividend rate by 20% to 66 cents per share.

The company recently announced plans to sell an additional $5 billion to $10 billion of noncore assets over the next two years to fund the company's recently announced $10 billion share repurchase program and for investing.

At its recent analyst day, ConocoPhillips outlined a plan to return 40% cash to shareholders annually through dividends and buybacks.

Conoco reiterated this goal in its first quarter earnings release. "We remain focused on delivering value through improving returns, increasing shareholder distributions and growing production and reserves per share," ConocoPhillips CEO Mulva said in the earnings.

-- Written by Eric Rosenbaum from New York.

>To contact the writer of this article, click here: Eric Rosenbaum.

>To follow the writer on Twitter, go to Eric Rosenbaum.
2 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BP $37.33 -0.16%
COP $52.07 -1.57%
CVX $91.65 -1.70%
XOM $81.50 -2.00%
AAPL $122.58 -0.33%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs