ConocoPhillips Reports First-Quarter 2013 Results; Growth Plans on Track

April 26, 2013

ConocoPhillips (NYSE: COP) today reported first-quarter 2013 earnings of $2.1 billion, or $1.73 per share, compared with first-quarter 2012 earnings of $2.9 billion, or $2.27 per share. First-quarter 2012 reported earnings included $0.7 billion from downstream operations prior to the separation of Phillips 66 on April 30, 2012.

Excluding special items, first-quarter 2013 adjusted earnings were $1.8 billion, or $1.42 per share, compared with first-quarter 2012 adjusted earnings of $1.8 billion, or $1.38 per share. Special items for the current quarter primarily related to asset sales and discontinued operations.

Following previous announcements to dispose of the company’s interests in Kashagan and the Algeria and Nigeria businesses, the associated earnings and production impacts for these assets have been reported as discontinued operations. This decreased adjusted earnings for first-quarter 2013 by $62 million, or $0.05 per share.


Highlights

    First-quarter total production of 1,596 MBOED, including continuing operations of 1,555 MBOED and discontinued operations of 41 MBOED.
    Eagle Ford, Bakken and Permian combined production up 42 percent compared to first-quarter 2012.
    Oil sands production averaged 109 MBOED, up 30 percent compared to first-quarter 2012.
    Major projects on schedule for fourth-quarter startup.
    First sale of oil from deepwater Gumusut Field.
    Coronado and Shenandoah discoveries in the deepwater Gulf of Mexico.
    Continued building deepwater Gulf of Mexico exploration portfolio.
    Entered Colombia to explore La Luna Shale.
    Completed sale of Cedar Creek Anticline properties for $1 billion.


“We are off to a strong start to the year, highlighted by the announcement of two significant oil discoveries in the deepwater Gulf of Mexico,” said Ryan Lance, chairman and chief executive officer. “Our base business is operating to plan, our development programs and major projects are performing as expected and we are on track to deliver production and margin improvements this year. We remain committed to our goal of 3 to 5 percent volume and margin growth, with a compelling dividend.”

Operations Update

Lower 48 and Latin America – First-quarter production was 475 thousand barrels of oil equivalent per day (MBOED), an increase of 24 MBOED compared to the same period in 2012. Growth continues from liquids-rich plays in the Eagle Ford, Bakken and Permian, which delivered 182 MBOED for the quarter, a 42 percent increase compared to the first quarter of 2012. The current quarter was unfavorably impacted by weather-related downtime in San Juan. The divestiture of the Cedar Creek Anticline properties for $1 billion was completed in March 2013.

Canada – Quarterly production increased by 17 MBOED over the same period in 2012, to 283 MBOED. The company’s oil sands programs continue to perform strongly, with production averaging 109 MBOED for the quarter. Oil sands expansion projects continued on schedule during the quarter.

Canada reported results for the quarter included $224 million for a favorable tax resolution on a prior asset disposition.

The production mix in the Lower 48 and Canada continues to shift from natural gas to liquids. For the quarter, total liquids production increased by