ConocoPhillips has reported a third quarter 2020 net loss of $450 million or 42 cents per share, Kallanish Energy reports.
That compares to 3Q 2019 net earnings of $3.1 billion or $2.74 per share.
Third quarter 2020 adjusted earnings were a loss of $300 million or 31 cents a share, compared with 3Q 2019 adjusted earnings of $900 million or 82 cents a share, the Texas-based E&P reported.
Revenues dropped from $2.3 billion in 3Q 2019 to $1.2 billion in 3Q 2020.
But the loss posted by ConocoPhillips was largely due to lower realized prices and lower volumes, it said.
Its total average realized price in the quarter was $30.94 per barrel, down 34% from the $47.07 per barrel in 3Q 2019.
In the quarter, ConocoPhillips produced 1.067 million barrels of oil equivalent per day, excluding Libya, and it had curtailed about 90 MBOED due to low prices and low demand in the wake of the coronavirus pandemic.
That production was down from 1.366 million barrels in 3Q 2019 production, a drop of 21.8%.
“As we all know, the year has been historically volatile for our industry,” said chairman and CEO Ryan Lance in a statement. “ConocoPhillips responded with several prudent actions including economically-driven curtailments while continuing to run the base business well.”
In the third quarter, the company ended its curtailments, Lance said.
“We remain very well-positioned financially and operationally thanks to our strong balance sheet and exceptional workforce,” he said.
ConocoPhillips is “back to more normal business” and is focused on completing its acquisition of Concho Resources, he said.
That $8.3 billion deal is expected to be completed in early 2021.
ConocoPhillips reported that its Big 3 plays in the United States averaged 309 MBOED in the quarter.
That included 167 MBOED in the Eagle Ford Shaler in South Texas, 75 MBOED in the Bakken Shale in North Dakota and Montana and 67 MBOED in the Permian Basin in West Texas and New Mexico.
Production in the Lower 48 states was curtailed by about 65 MBOED primarily in the Eagle Ford and the Bakken, the company said.
At the Surmont in Canada, the company curtailed production by about 15 MBOED.
At the Montney in western Canada, the second well pad was started up and a third pad will come online in 1Q 2021.
In Norway, Tor II progress was expected to result in first oil in 4Q 2020, it said.
The company is expecting full-year 2020 production of 1.115 to 1.125 million barrels of oil equivalent per day.
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