ConocoPhillips’s 1Q18 operational performance
For 1Q18, ConocoPhillips (COP) reported total production of 1,224 Mboepd (thousand barrels of oil equivalent per day), which is above the company’s 1Q18 production guidance range of 1,180–1,220 Mboepd. ConocoPhillips’s 1Q18 production guidance and reported production exclude production from Libya. Including Libya, ConocoPhillips’s 1Q18 production was 1,269 Mboepd.
ConocoPhillips’s 1Q18 production is ~33% lower compared to its 1Q17 production of 1,584 Mboepd. Sequentially, ConocoPhillips’s 1Q18 production is less than one percentage point higher compared to 4Q17.
What impacted ConocoPhillips’s 1Q18 production?
ConocoPhillips’s 1Q18 production was impacted negatively by its 2017 asset dispositions. ConocoPhillips’s 1Q18 production was impacted by 402 Mboepd due to dispositions. In 2017, ConocoPhillips executed big asset sales amounting to ~$16 billion to achieve financial flexibility. The asset sales included ConocoPhillips’s transformational Canadian asset divestitures of Foster Creek Christina Lake’s (FCCL) oil sands mining operations and gas assets located in western Canada’s Deep Basin to Cenovus (CVE) in 2Q17. ConocoPhillips also closed its San Juan assets and Barnett asset sales in 4Q17.
Excluding the impact of dispositions, ConocoPhillips’s 1Q18 production is 42 Mboepd or ~4% higher compared to 1Q17. The higher production came from increased production in unconventional assets.
ConocoPhillips’s production guidance
For 2Q18, ConocoPhillips expects total production of 1,170–1,210 Mboepd—a mid-point decrease of ~16% compared to its 2Q17 production.
For 2018, ConocoPhillips expects its fiscal production to be 1,200–1,240 Mboepd, which will result in ~5% growth compared to its fiscal 2017 production adjusted for dispositions. ConocoPhillips’s production guidance excludes Libya.