Seeking Alpha

ConocoPhillips Q4 profit higher on asset sales, shares flat

  • ConocoPhillips (COP) flat premarket as Q4 earnings rose 74%, boosted by $7B in proceeds from asset sales including the strategic sale of its interest in the Kashagan and the Algeria business.
  • Production from continuing operations during Q4 averaged 1.473B boe/day, 93M lower than Q4 2012; preliminary year-end 2013 proved reserves are 8.9B boe, up 3% Y/Y, while proved organic reserve additions are expected to total ~1.1B boe (a reserve replacement ratio of 179% of 2013 production).
  • Expects to deliver 3%-5% production growth in 2014; excluding Libya, FY 2014 production outlook is unchanged at ~1.55B boe/day, with Q1 2014 production from continuing operations seen at 1.49B-1.53B boe/day.
Comments (6)
  • Shares outstanding rose again. I think that's five straight quarters with this increasing...
    30 Jan, 08:17 AM Reply Like
  • It's gonna get tougher and tougher for COP to pay those per-share dividends.

     

    XOM on the other hand...
    30 Jan, 09:31 AM Reply Like
  • COP is a steady growth company with very shareholder friendly management and an Excellent sustainable dividend.

     

    Long COP
    30 Jan, 09:30 AM Reply Like
  • Selling the Kashagan and the Algeria interests was a smart move. They have excellent shale plays in the US and I believe their 2014 growth estimates are conservative. I'm staying long and will pick up more shares below $64.
    30 Jan, 12:53 PM Reply Like
  • I guess a lot will be hinging on what they do with 7 billion acquired through the asset sales?
    Invest in infrastructure..
    Invest in exploration..
    New leases...
    Sustain dividends or increase?
    Share buybacks...
    Pay off debt...
    Etc, etc....Long and acquiring more past week or two, including today.
    30 Jan, 07:05 PM Reply Like
  • Dividends should be held at present rate until further debt reduction is completed. And, no, there should be NO share buybacks. Just my 2 cents.
    30 Jan, 07:56 PM Reply Like
DJIA (DIA) S&P 500 (SPY)