ConocoPhillips Takes Hit With Wider Loss -- WSJ

By Anne Steele 

ConocoPhillips widened its adjusted loss in the latest quarter as revenue slid more than expected amid the continued commodities slump.

ConocoPhillips, among a number of energy companies that have been selling noncore businesses, said it progressed on its asset sales and recently retired $1.25 billion of debt.

The company has continued to reduce its spending to improve its cash flow and balance sheet. Chief Executive Ryan Lance said for the second quarter in a row the company is lowering 2016 guidance on capital expenditures and adjusted operating costs, while increasing production guidance for the year.

The Houston company cut its 2016 capital spending plan to $5.2 billion from $5.5 billion, and increased the midpoint of its full-year 2016 production guidance to 1.6 million barrels of oil equivalents a day.

In the latest quarter, Conoco said its average selling prices slipped 9.4% from a year earlier to $29.78, reflecting lower crude and natural gas prices, partly offset by higher natural-gas liquids and bitumen prices.

Over all for the September quarter, Conoco reported a loss of $1.0 billion, or 84 cents a share, compared with a year-earlier loss of $1.1 billion, or 87 cents a share, a year earlier. Excluding restructuring charges, pension-related expenses, an asset sale gain and other items, the adjusted per-share loss was 66 cents, compared with the year earlier's 38-cent loss. Analysts polled by Thomson Reuters had expected a 70-cent loss.

Total revenue and other income fell 13% to $6.52 billion, below analyst estimates for $6.82 billion.

Shares, inactive premarket, have fallen 11% so far this year.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

October 28, 2016 02:48 ET (06:48 GMT)

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