Conoco returns to profit in Q1
US major ConocoPhillips announced May 4 that first quarter earnings of $1bn was a marked improvement over its $1.7bn loss during the same period last year.
Conoco had reported losses for three straight quarters. Apart from improved earnings, cash flow came in at $900mn.
Ryan Lance, the company’s chairman, said results exceeded expectations, and looking forward, the company was primarily focused on returning capital to its shareholders, lowering its overall emissions and improving capital efficiency.
“These are the essential keys to long-term success in the business,” he said.
Unveiling future plans, the company said it intends to sell its 10% interest in Canadian oil sands producer Cenovus Energy in Q2 and will use the proceeds to continue its share buyback programme and reduce debt.. Over the next five years, Conoco said it aims to lower its debt burden by some $5bn.
Conoco on March 31 provided production guidance for Q1 2021, which includes an estimated 3.2mn ft3/day of natural gas from its various assets. Total production for the quarter was projected at 1.47mn-1.48mn barrels of oil equivalent (boe)/day, more than the 1.54mn boe/d this time last year. The company realised total production in Q1 of 1.49mn boe/d.