uploads///COP Q Pre Revenue

Analyzing ConocoPhillips’s 4Q16 Revenue Expectations

Nicholas Chapman - Author

Jan. 27 2017, Published 3:57 p.m. ET

Revenue estimates

ConocoPhillips (COP) is set to report its 4Q16 and 2016 earnings on February 2, 2017, before the market opens. Wall Street analysts are expecting the company to report ~9.0% higher revenues year-over-year compared to 4Q15.

Sequentially, ConocoPhillips’s 4Q16 revenue expectations are ~14.0% higher than 3Q16. For 2016, analysts expect ConocoPhillips to report revenues of ~$24.3 billion, which is ~22.0% lower than ~$30.9 billion in 2015.

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Why ConocoPhillips reported better revenues in 3Q16

In its 3Q16 earnings release in October 2016, ConocoPhillips reported ~17.0% sequential revenue growth compared to 2Q16. Higher production and better realized prices in 3Q16 increased COP’s revenues from oil and gas production sales, which positively impacted its 3Q16 revenues. The company’s realized price rose to $29.78 per boe (barrel of oil equivalent) in 3Q16, from $27.79 per boe in 2Q16.

ConocoPhillips’s peers Devon Energy (DVN) and Occidental Petroleum (OXY) have also reported sequentially higher revenues of $2.9 billion and $2.7 billion, respectively. Marathon Oil (MRO) reported sequentially lower revenues of $1.2 billion in 3Q16. The Energy Select Sector SPDR ETF (XLE) generally invests at least 95.0% of its total assets in oil and gas companies.

In this series

In this part, we’ve analyzed COP’s 4Q16 revenue expectations. In the rest of this series, we’ll look at COP’s EPS (earnings per share) expectations and what the odds are that it will beat EPS expectations. We’ll explore the company’s production guidance, capex (capital expenditure) guidance, and cash flow estimates. Finally, we’ll see what Wall Street analysts are saying about ConocoPhillips ahead of its 4Q16 earnings release.


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