Oil giant ConocoPhilips (NYSE:COP) is pulling in its horns after posting a US$1.1bn loss in the third quarter.
It was the Houston-based oil and gas producers deepest loss in more than six years, and reflects the recent collapse in oil prices.
The underlying loss per share was 87 cents, compared to positive earnings per share the year before of US$2.17. Analysts had penciled in a loss of 37 cents a share.
Oil and gas production rose 5.5% year-on-year to 1.55mln barrels of oil equivalent per day, with the average realized price slumping to US$32.91 a barrel from US$64.78 a year earlier.
The company reined in its spending plans for the year again after the deeper than expected loss, saying it now plans to spend around US$10.2bn this financial year, compared to previous guidance of capital expenditure of US$11bn.
Operating cost guidance was also lowered, to US$8.2bn from US$8.9bn.
The company is keen to maintain its dividend, which offers a handsome 5.6% yield, and the spending cutbacks will go some way to easing income investors' concerns on this point.
Earlier today, Anglo-Dutch integrated oil major Royal Dutch Shell (LON:RDSB, NYSE:RDS.B) reported a US$6.1bn loss for the third quarter, driven largely by US$4.6bn of write-offs as it halted Arctic exploration in Alaska and the development of oil sands in Alberta, Canada.