This marks the second time in two quarters it has lowered its capex guidance.
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US oil producer ConocoPhillips reported a bigger-than-expected quarterly loss and cut its 2016 budget for the third time this year amid a crude oil slump that has lasted for two years. That said, operationally the company’s quarter was not that bad, with it making solid progress to improve three key numbers.
ConocoPhillips earlier this month announced a quarterly dividend of 25 cents per share.
Surprisingly, those wildfires did not weigh on ConocoPhillips’ overall production as much as anticipated.
But Conoco, which produces crude oil, natural gas, liquid natural gas and bitumen, boosted its full-year production guidance from 1,540 to 1,570 thousand barrels of oil equivalent per day. We are continuing to ramp up production from our APLNG and Surmont projects, and achieved first production at Foster Creek Phase G in Canada.
ConocoPhillips, whose shares were down 1.7 percent in premarket trading, cut its capital budget to $5.5 billion from $5.7 billion.
Executives are expecting production to increase in 2016, and have adjusted expectations from 1.5 million barrels per day of oil equivalent to nearly 1.6 million. The newly revised budget is also well below the $7.7 billion budget the company initially announced last December.
Analysts expected per-share loss of 61 cents and revenue of $6.62 billion, according to FactSet.
Last quarter the company took advantage of its solid credit rating to raise $4.6 billion of low-priced debt to bolster its cash position.
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Conoco reduced its debt by $800 million in the quarter, and the company remains on track $1 billion of asset sale proceeds.
