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ConocoPhillips beats estimates, as higher gas prices boost revenues

  • ConocoPhillips (COP) +1.5% premarket after Q1 earnings beat Wall Street expectations and revenue rose 9.5% to $16.05B, also ahead of estimates.
  • Q1 production from continuing operations, excluding Libya, jumped 24M boe/day to 1.53B boe/day, while total average realized prices gained 3.9% reflecting higher natural gas, bitumen and natural gas liquids price that offset lower crude prices.
  • Marketing third-party natural gas contributed $100M in after-tax income.
  • Sees Q2 production of 1.49B-1.54B bbl/day and FY 2014 output of 1.51B-1.55B bbl/day, excluding Libya; expects volumes and margins to grow 3%-5% in 2014.
This was corrected on 05/01/2014 at 09:04 AM.
Comments (11)
  • JDDurango
    , contributor
    Comments (137) | Send Message
     
    Nice results!

     

    Congrats to all COP shareholders
    1 May, 08:18 AM Reply Like
  • mikem0309
    , contributor
    Comments (39) | Send Message
     
    owned cop for 1 1/2 years. very happy with it. all americans should own an oil stock and stop complaining when the price of gas goes up. have made enough in this stock to pay for my gas for the next 5 years.
    1 May, 08:47 AM Reply Like
  • 14 Matrix
    , contributor
    Comments (7) | Send Message
     
    1.53bbl/day in the worst winter in 25 yrs, and that's upper end guidance going forward? This train keeps on roll'in, count on another beat in Q2.
    1 May, 08:25 AM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (8085) | Send Message
     
    Nice to see natural gas start to contribute again! COP is the #7 domestic nat gas producer. Nat gas helped XOM this quarter too. I think folks are over-looking the bullish outlook on natural gas:

     

    http://seekingalpha.co...
    1 May, 08:33 AM Reply Like
  • oldokie
    , contributor
    Comments (386) | Send Message
     
    Hey Mike, have been looking for your next article. If you recall, in Jan I predicted 90 for COP by Dec of this year and 120 in value by Dec 15. They may not make either but let me show you an old Okie's from Bartlesville logic. I used their high estimates on production (x), multiplied it by the spread (y) and came up with (z) dollars. If their earnings now support a value of $70 (I know it is about 75 but I like zeros), then using their current PE the stock will support $90. Next year it should support 110-120. This is pretty simplistic and there are lots of variables, but what do you think?
    2 May, 05:56 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (8085) | Send Message
     
    Hi okie - yes, I need to reload and write something on COP. I have an idea, but I am waiting for all the Q1 earnings articles to get written then I will wade in. My first article of the year on COP, actually late Dec of last year, predicted a ~20 total return for the year. At the time, that worked out to ~$80/share + the dividend yield, which I think is still very doable. However, if natural gas prices stay firm, and WTI stays above ~$90, it is possible my $80 target could be low. However, note on the presentation that COP has some planned maintenance in Q2 and Q3 that will significantly impact production. It may be that the fireworks in the stock might be 2nd half loaded. However, it may run up another few points on this most recent earnings report, which I absolutely loved.
    2 May, 06:04 PM Reply Like
  • Rose_Colored_Glasses
    , contributor
    Comments (908) | Send Message
     
    I have been a COP shareholder for years. They just blew me away with their PSX spinoff - said it would create shareholder value and guess what? That is exactly what it did. If you like a leadership team that says what it is going to do and then does what it says - COP is for you! Don't sweat valuations - just buy. Don't do what I did, COP was at $68 and I tried to be smart and put my buy order in at $66.50 and it never hit. That was like a month or so ago.
    1 May, 08:41 AM Reply Like
  • User 353732
    , contributor
    Comments (4785) | Send Message
     
    Domestic natural gas is beginning to propel earnings not just a COP but also at XOM, whose strategic position in North American natural gas is the best of any company. Smaller companies such as DVN should also benefit. As infrastructure constraints are relieved over the next 3 years in the Marcellus, RRC could become a very valuable company
    1 May, 08:44 AM Reply Like
  • Sum02006
    , contributor
    Comments (347) | Send Message
     
    Terrific quarter for an outstanding company!
    1 May, 09:24 AM Reply Like
  • billinsd
    , contributor
    Comments (1411) | Send Message
     
    LONG,LOUD,AND PROUD
    GO COP
    1 May, 09:48 AM Reply Like
  • user 18159032
    , contributor
    Comments (378) | Send Message
     
    Mikem; hush your mouth. People will know why we are grinning at the gas pump whether it is going up or down.
    1 May, 02:57 PM Reply Like
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