Michael Fitzsimmons on earnings: CVX vs XOM.
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COP
From SeekingAlpha:
- net income increased $1.9 billion, or $1.59 per share, in the third quarter ended September 30, 2018, which included a $345 million payment related to a settlement agreement with PDVSA
- the dividend is now $1.22 per share on a yearly basis and a share buyback program of $3 billion
- ConocoPhillips is turning into a cash machine. Debt reduction, share buyback, increased CapEx and dividend accretion are the topics, and they are a pleasant subject.
I've long maintained that at some point shareholders would be rewarded for their patience. I had missed the COP dividend announcement or if I posted it earlier I had forgotten about it.
COP dividends, quarterly:
- February, 2014: 69 cents; February, 2014, was not so long ago
- May, 2015: 73 cents
- July, 2015: 74 cents
- during 2016: 25 cents/quarter
- during 2017: 26.5 cents/quarter
- during 2017: 28.5 cents/quarter
- apparently, next dividend will be 30.5 cents/share
- 1Q16: $5 billion
- 3Q18: $10 billion
"In the third quarter, we generated $1.6 billion, or $1.36 per share of adjusted earnings.
And here's some interesting perspective. The last time ConocoPhillips generated quarterly adjusted earnings of $1.6 billion from continuing operations was in the third quarter of 2014. Brent was over $100 per barrel and our production was almost 1.5 million barrels of equivalent oil per day.
So we're as profitable today as we were then despite prices being 25% lower and volumes being 20% lower. So bigger isn't always better."Also, from the article:
ConocoPhillips' singularity is that the company presents a high exposure to Brent oil price which has yielded the company a definitive edge over its U.S. rivals, who have been hit by production transport bottlenecks that have weakened prices of Texas local crude.These bottlenecks will be solved.
Shale:
- Production in Lower 48 represents 32.8% of the total output including Libya. The Lower 48 includes the three US shale basins (Eagle Ford, Bakken, and Delaware) and also the production from the Gulf of Mexico.
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