ConocoPhillips cuts Q4 output forecast, citing weather-related downtime

ConocoPhillips (COP) says its Q4 production will be lower than expected as severe weather disrupted operations in parts of the U.S. and the North Sea.

COP forecasts Q4 output from continuing operations of 1.475M boe/day, down from its prior forecast for 1.485M-1.525M boe/day.

COP says FY 2014 guidance remains unchanged at ~1.6M boe/day, which includes 50K boe/day from Libya's Es Sider terminal, which is still offline due to regional conflicts.

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Comments (2)
  • Michael Fitzsimmons
    , contributor
    Comments (11693) | Send Message
    Not too surprising considering the severe weather, which is probably being felt by all the operators in the North Sea and Bakken/Niobrara .. probably one reason why oil prices are remaining relatively firm. Glad COP got the announcement out of the way, but too bad because COP was on a roll and my gut tells me if it had not been for the weather they would have likely come in toward the top-end of their previous guidance. But no long-term impact, just weather related downtime so 2014 guidance not affected.
    7 Jan 2014, 06:04 PM Reply Like
  • treyminator
    , contributor
    Comments (85) | Send Message
    Severe weather will adversely affect all E & P operations in North America. That indicates production will temporarily fall; which means inventories will fall, especially when demand for heating oil and gas is spiking. Also, refineries are closing temporarily, which means auto and jet fuel production is going down (albeit temporarily). All of which means oil and gas should increase for a while and help offset affects of lost production.
    8 Jan 2014, 12:33 AM Reply Like
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