ConocoPhillips’s 4Q16 operational performance
For 4Q16, ConocoPhillips (COP) reported total production of 1,567 Mboe (thousand barrels of oil equivalent) per day, which is within its 4Q16 production guidance range of 1,555–1,595 Mboe per day. Even though ConocoPhillips’s production is within guidance range, its 4Q16 production is ~2% lower when compared with 4Q15 production of 1,599 Mboe per day.
Sequentially, ConocoPhillips’s 4Q16 production is higher by ~1% when compared with 3Q16.
Factors that impacted COP’s 4Q16 production
ConocoPhillips’s 4Q16 production was negatively impacted by dispositions and normal field decline. In the last one year, ConocoPhillips completed asset sales in the Lower 48, Canada, Polar Lights, and Alaska.
ConocoPhillips’s lower production due to the above factors was offset by production from new projects and growth from its existing major projects, lower planned downtime, and improved well performance. In 4Q16, COP achieved its first production at APLNG Train 2 in Australia, Malikai in Malaysia, Bohai WHP-J in China, and Alder in Europe.
When adjusted for dispositions and downtime, COP’s 4Q16 production is higher by 44 Mboe per day.
For 1Q17, ConocoPhillips expects total production in a range of 1,540–1,580 Mboe per day, a midpoint decrease of ~1% when compared with 1Q16 production.
For 2017, ConocoPhillips expects full-year production guidance in a range of 1,540–1,570 Mboe per day, a midpoint decrease of ~7 Mboe per day, or ~0.45%, from 2016. But when adjusted for the full-year impact of 2016 dispositions (27 Mboe per day), COP’s 2017 production guidance will represent flat to 2% growth.