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Analyzing ConocoPhillips’s 2Q16 Earnings

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ConocoPhillips misses 2Q16 earnings estimates

ConocoPhillips (COP) announced its 2Q16 earnings on July 28, 2016, before the market opened. ConocoPhillips reported adjusted EPS of -$0.79, $0.18 worse lower the Wall Street analyst estimate for EPS of -$0.61.

COP’s 2Q16 EPS are $0.86 lower than 2Q15 EPS of $0.07. However, when compared sequentially with the 1Q16 EPS, COP’s 2Q16 EPS are $0.16 higher.

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ConocoPhillips’s 2Q16 revenues miss estimates

For 2Q16, COP reported adjusted revenues of ~$5.6 billion, ~16% lower than the Wall Street analyst estimate of ~$6.6 billion. COP’s 2Q16 revenues are ~33% lower than the 2Q15 revenues of ~$8.3 billion. However, when compared sequentially with 1Q16, COP’s 2Q16 revenues are ~11% higher.

ConocoPhillips’s earnings trends

As shown in the above chart, ConocoPhillips reported much lower EPS in 2015 due to lower realized crude oil (USO) and natural gas (UNG) prices. In 1Q15, COP saw its adjusted earnings turn negative for the first time since 2002.

Since 2013, ConocoPhillips has beaten earnings expectations ~64% of the time. Upstream players WPX Energy (WPX), Marathon Oil (MRO), and EOG Resources (EOG) have beaten earnings expectations ~38%, ~54% and ~92% of the time, respectively.

In this series

In addition to analyzing ConocoPhillips’s 2Q16 earnings and revenue performance, in the course of this series, we’ll also look at ConocoPhillips’s 2Q16 cash flow, operational performance, Wall Street analyst ratings, price forecast based on implied volatility, and how its stock price reacted after missing past earnings estimates. In the next part, we’ll take a look at how much cash ConocoPhillips generated in 2Q16.

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