ConocoPhillips, a large U.S. independent oil company, today reported first-quarter 2015 earnings of $272 million, compared with first-quarter 2014 earnings of $2.1 billion.
Production from continuing operations, excluding Libya, for the first quarter of 2015 was 1,610 MBOED, an increase of 80 MBOED compared with the same period a year ago. The net increase reflects 82 MBOED, or 5 percent growth, after adjusting for 2 MBOED from dispositions and downtime. Growth was primarily due to new production from major projects and development programs, partially offset by normal field decline.
Adjusted earnings were lower compared with first-quarter 2014 primarily due to lower realized prices and increased dry hole expense, partially offset by higher volumes. The company’s total realized price was $36.96 per barrel of oil equivalent (BOE), compared with $71.21 per BOE in the first quarter of 2014, reflecting lower average realized prices across all commodities.
Operating costs for the quarter were $2.1 billion compared with $2.3 billion in the first quarter of 2014. Adjusted for restructuring costs of $104 million pre-tax, operating costs were improved 12 percent year over year.
“This significant downturn in prices has been a test for the industry,” said Ryan Lance , chairman and chief executive officer. “We responded by quickly adjusting our plans, while remaining focused on executing the aspects of the business that we control. By these measures, the first quarter was a success. We delivered on our growth targets, reduced our costs and progressed the programs and projects that will position us for strong future performance in what we expect could be a more favorable commodity price environment. While the environment remains uncertain, our value proposition remains unchanged – deliver a compelling dividend and predictable growth, with a focus on margins and financial returns.”