Chart in Focus: ConocoPhillips’s 2Q16 Cash Flow Estimates

For 2Q16, ConocoPhillips (COP) expects cash flow of $0.83 per share, ~53% lower compared to 2Q15.

As seen in the above chart, ConocoPhillips has reported falling cash flows since 4Q14, mainly due to lower realized crude oil (USO) and natural gas (UNG) prices. In 1Q16, ConocoPhillips reported its lowest ever cash flow of $0.34 per share.

For 2Q16, Wall Street analysts expect ConocoPhillips to report negative free cash flow of ~-$0.26 per share.

Due to the steep downward trend in energy prices, most S&P 500 (SPY) energy companies have reported lower year-over-year cash flows. Marathon Oil (MRO), Devon Energy (DVN), and Southwestern Energy (SWN) reported free cash flows of $0.10 per share, $0.31 per share, and $0.24 per share, respectively, in 1Q16.