ConocoPhillips Pivots to Q3 Loss
US major ConocoPhillips said October 29 it had net loss of $500mn in Q3 2020, a sharp reversal from earnings of $3.1bn in the same period a year ago.
Adjusted earnings were a loss of $300mn against adjusted earnings of $900mn in Q3 2019. Adjusted earnings in 2020 reflected an unrealised loss on Conoco’s equity in Cenovus Energy, partly offset by a “favourable outcome” from pending claims and settlements, while in 2019 adjusted earnings largely reflected gains from the sale of UK assets.
“As we all know, the year has been historically volatile for our industry,” CEO Ryan Lance said. “In the third quarter we ended our curtailment program and successfully completed our seasonal turnarounds.”
Production curtailments in Q3 averaged about 90,000 barrels of oil equivalent (boe)/d, pushing total production for the quarter to about 1.07mn boe/d from 1.32mn boe/d. Not included is Conoco’s Libyan production, which remains under force majeure.
Lower 48 production in the US – mainly from Conoco’s ‘Big 3’ assets of Eagle Ford, Bakken and Permian – averaged 309,000 boe/d, reflecting curtailments in the Eagle Ford and Bakken of about 65,000 boe/d.