Which Region Generated the Highest Adjusted Earnings for COP?



Adjusted earnings

In 4Q16, ConocoPhillips (COP) reported adjusted loss of ~$318 million, which is better than COP’s loss of ~$826 million in 3Q16. ConocoPhillips’s sequential earnings got a boost from improved realizations due to higher crude oil (USO) and natural gas (UNG) prices. COP’s average realized price increased from $32.93 per boe (barrel of oil equivalent) in 4Q16 from $29.78 per boe in 3Q16.

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Region-wise performance

In 4Q16, ConocoPhillips’s Asia-Pacific and Middle East operations were most profitable with a profit of ~$182 million, whereas lower 48 operations produced the highest region-wise loss of ~$219 million.

Other upstream players

Many S&P 500 (SPY) (SPX-INDEX) upstream companies like Southwestern Energy (SWN) and Range Resources (RRC), which have operations in the Lower 48 region, have also reported losses in 3Q16.


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