ConocoPhillips (NYSE:COP) stock traded down in Thursday’s premarket deals as it confirmed a steep decline in financial metrics for the second quarter, reflecting softer crude oil pricing compared to last year's peaks.
The Houston-headquartered oiler reported US$2.2 billion in earnings (adjusted EBITDA), US$1.84 per share, from US$5.1 billion and US$3.96 respectively a year ago.
Earnings per share also fell short of market consensus estimates, which were pitched at US$1.94.
It reported an average realized oil price of US$54 per barrel, down 38% year-on-year, from US$88.57.
Nonetheless, chief executive Ryan Lance described a strong underlying performance, pointing to a record quarter for production, with a daily rate of 1.8 million barrels oil equivalent, and raising ConocoPhillips (NYSE:COP)’ production guidance for the full year.
“The second quarter demonstrated our strong underlying performance and commitment to advancing the returns-focused value proposition we shared at our analyst and investor Meeting in April,” Lance said.
Operationally, ConocoPhillips (NYSE:COP) also noted progress with its LNG growth strategy, including the signing of a 20-year offtake deal for an export facility in Mexico.
ConocoPhillips (NYSE:COP) confirmed US$2.7 billion of shareholder returns in the quarter, comprising dividends and stock buy-backs, and maintained its target of US$11 billion in distributions for the full year.
The oil major ended the three-month period with US$7.1 billion of cash and short-term investments.
In the third quarter, it projected third-quarter 2023 production of 1.78 to 1.82 million barrels per day, and, raised full-year production guidance to 1.80 to 1.81 million barrels.
In New York, at around 10:15am, ConocoPhillips (NYSE:COP) stock was down US$1.38 or 1.2% trading at US$114.16 per share.