ConocoPhillips’s EBITDA per unit of production
In 3Q16, ConocoPhillips (COP) reported lower adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) per unit of production on a sequential and year-over-year basis. Sequentially, ConocoPhillips’s 3Q16 adjusted EBITDA per unit of production is lower by ~10% when compared with 2Q16.
Sequentially, ConocoPhillips’s 3Q16 production rose ~2% when compared with 2Q16. But despite growth in production, COP failed to report increased EBITDA in 3Q16. On a year-over-year basis, ConocoPhillips’s 3Q16 adjusted EBITDA per unit of production is lower by ~8% when compared with 3Q15.
In 2015 and 2016, ConocoPhillips reported much lower quarterly EBITDA per unit of production when compared with the corresponding quarters in 2014. In 4Q15, COP reported the lowest ever adjusted EBITDA normalized to total production.
COP’s peers like Murphy Oil (MUR), California Resources (CRC), and Denbury Resources (DNR) have also reported much lower year-over-year adjusted EBITDA per unit of production. The Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.