ConocoPhillips reports quarterly profit
ConocoPhillips is back in the black after posting a $420 million profit in the third quarter.
The positive results are just the second profitable quarter for the company since the start of 2016. ConocoPhillips netted $586 million in the first quarter of this year but reported a $3.4 billion loss in in the second quarter. For the year, the company is still $2.4 billion in the red.
ConocoPhillips reported just more than a $1 billion profit in the third quarter of 2016.
Specifically to Alaska, ConocoPhillips reported a $103 million third quarter profit in the state and $291 million of net income from its North Slope Alaska operations for the year.
“We are pleased with our financial and operational performance for the quarter and the outstanding resilience of our employees during Hurricane Harvey,” CEO Ryan Lance said in a formal statement. “We continued to deliver transformational actions to reset our company through non-core asset sales, debt reduction and share repurchases. While the outlook for commodity prices has improved, we remain committed to our disciplined strategy. We are focused on free cash flow generation, strong financial returns, shareholder value creation and distributions through the cycles.”
The company lowered its expected $5 billion capital spend for 2017 to about $4.5 billion and reduced its operating expenses by 20 percent year-over-year, according to an investor release.
Of late, Alaska projects have made up roughly 20 percent of the company’s worldwide capital budget.
ConocoPhillips also paid down $2.4 billion in debt during the quarter and company leaders expect to hold less than $20 billion in debt by the end of the year, according to the release.
ConocoPhillips produced 154,000 barrels of oil per day in Alaska during the quarter, a year-over-year increase of 6,000 barrels per day.
Elwood Brehmer can be reached at [email protected]