ConocoPhillips Suffers A Loss In 1Q On Weak Oil Prices

ConocoPhillips

reported a net loss of $1.5 billion, or a loss of $1.18 per share for the first quarter. In comparison, the oil firm earned profit of $272 million, or $0.22 per share in the previous year quarter. Excluding special items, adjusted earnings would have been a net loss of $1.2 billion, or a loss of $0.95 per share, which was wider than the year-ago period's adjusted net loss of $222 million, or a loss of $0.18 per share. Street analysts predicted the company to suffer a loss of $1.05 a share. The company's Chairman and CEO, Ryan Lance, commented, "We continue to safely deliver on our operational targets while taking steps to manage through this period of low prices. During the quarter, we took actions to conserve cash, improve liquidity and position the company for strong performance as prices improve." ConocoPhillips CEO added further that "We reduced our dividend, further reduced our 2016 capital expenditures guidance, raised low-cost debt and continued to improve our cost structure. These actions, in combination with ongoing strong execution of the business, allow us to deliver on our value proposition, which recognizes the importance of distributions to shareholders, disciplined capital allocation, a focus on returns and a strong investment-grade balance sheet. As challenging as this price downturn has been, we are a much stronger company for the long term." The company achieved production of 1,578 MBOED in the first quarter and lowered operating costs by over 20% on a YOY basis. The oil firm indicated that it raised $4.6 billion low-cost debt and closed the quarter with cash and short-term investments of $5.2 billion. Moving ahead, ConocoPhillips said that it was reducing its capital expenditures outlook to $5.7 billion in the current year from $6.4 billion projected earlier. Most of its other guidance for the current year was retained by the company. Shares of the company closed 0.06% higher on Wednesday.