ConocoPhillips Tumbles Following Poor Q4 Print
ConocoPhillips said that it lost $0.90 per share in the fourth quarter on revenue of $6.77 billion. Wall Street analysts were expecting the company to lose $0.52 per share on revenue of $9.08 billion.
Net loss for the quarter worsened to $3.5 billion from a net loss of $39 million in the same quarter a year ago. For the full fiscal year, net loss totaled $4.4 billion compared to a 2014 earnings of $6.9 billion.
ConocoPhillips announced revisions to its 2016 operating plan. The company lowered its capital expenditures guidance to $6.4 billion from a previous $7.7 billion and operating cost guidance to $7.0 billion from $7.7 billion.
ConocoPhillips also slashed its quarterly dividend to $0.25 per share from a previous quarterly dividend of $0.74 per share.
"While we don't know how far commodity prices will fall, or the duration of the downturn, we believe it's prudent to plan for lower prices for a longer period of time," said Ryan Lance, chairman and chief executive officer. "The actions we have announced will improve net cash flow by $4.4 billion in 2016. The decision to reduce the dividend was a difficult one. The dividend has been, and will continue to be, a top priority. We still intend to provide a competitive dividend, while significantly lowering the breakeven price for the company and substantially reducing the level of borrowing in 2016. Our actions also position us to deliver strong absolute and relative performance as prices recover."
At the time of this publication, ConocoPhillips had rebounded, trading slightly down 0.05 percent at $38.61.
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