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ConocoPhillips’s Yearly Revenue Growth despite Big Asset Sales

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ConocoPhillips’s 4Q17 revenues

For 4Q17, ConocoPhillips (COP) reported revenues of ~$8.7 billion, which was higher than the Wall Street analyst consensus of ~$7.6 billion. Sales and other operating revenues were ~$8.1 billion, a gain on dispositions of ~$33 million and other revenues of ~$584 million. That means that ~93% of COP’s revenues came from oil and gas production sales and purchased commodities. Its other revenues include equity in earnings of affiliates and other income.

Sequentially, COP’s 4Q17 revenues were ~21% higher compared with 3Q17 revenues of ~$7.2 billion. On a year-over-year basis, its 4Q17 revenues were ~21% higher compared with 4Q16 revenues of ~$7.3 billion.

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Reasons behind higher revenues in 4Q17

ConocoPhillips saw a steep year-over-year decline in its 4Q17 production due to big asset sales in 2017 and higher realized prices for crude oil (USO), natural gas liquids, and natural gas. All these factors impacted its revenues positively. COP reported a ~25% higher crude oil (SCO) realized price of $58.99 per barrel in 4Q17, from $47.05 per barrel in 4Q16. We’ll be looking at COP’s production in the next part.

COP’s 2017 revenues

For 2017, ConocoPhillips reported revenues of ~$32.6 billion, which was ~34% higher than ~$24.4 billion in 2016. COP’s peer Devon Energy (DVN) is expected to report revenues of ~$13.4 billion in 2017, which is ~30% higher than ~$10.3 billion in 2016.

Now let’s take a look at ConocoPhillips 4Q17 operational performance.

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