ConocoPhillips (COP – Free Report) reported fourth-quarter 2017 adjusted earnings of 45 cents per share, in line with the Zacks Consensus Estimate. In the prior-year quarter, the company had posted a loss of 26 cents.
Revenues of $8,736 million beat the Zacks Consensus Estimate of $7,698 million and improved from $7,254 million in the year-ago quarter.
The fourth-quarter results were supported by higher oil and natural gas price realizations.
Hike in Dividend & Share Repurchases
ConocoPhillips got an approval from the board of directors to hike the quarterly dividend to 28.5 cents per share from 26.5 cents, representing an increase of 7.5%. The new dividend will likely be paid on Mar 1 to stockholders of record as of Feb 12.
The company also enhanced its share buyback program. With this, ConocoPhillips will increase share repurchases during 2018 to $2 billion from the prior projection of $1.5 billion.
Exploration and Production
Production from continuing operations averaged 1,256 thousand barrels of oil equivalent per day (MBOED) in the quarter, lower than 1,596 MBOED in the year-ago quarter. The decline was led by planned divestment of assets.
Price Realization
Average realized price for oil was $58.99 a barrel, up from $47.05 in the year-earlier quarter. Natural gas liquids were sold at $32.79 a barrel, up from $21.82 in the year-ago quarter. The price of natural gas was $4.59 per thousand cubic feet, compared with $3.44 in fourth-quarter 2016.
Financials
As of Dec 31, 2017, the company had total cash and cash equivalents of $6.3 billion and debt of $19.7 billion, with a debt-to-capitalization ratio of 39%. In the reported quarter, ConocoPhillips generated $2.5 billion in cash from operating activities. Capital expenditures and investments totaled $1.5 billion and dividends payments grossed $319 million.
Total Expenses
The company reported expenses of $7.4 billion in the fourth quarter, compared with $7.3 billion in the October-December quarter of 2016.
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