Exxon Mobil, ConocoPhillips Q1 Profits Beat View

(RTTNews) - Oil companies Exxon Mobil Corp. (XOM) and ConocoPhillips (COP) on Thursday reported earnings for the first quarter that beat analysts' estimates, helped by higher natural gas prices.

Exxon Mobil reported a 4 percent decline in profit for the first quarter from last year, reflecting weak refining margins and a decline in production. However, earnings per share for the quarter beat analysts' expectations, reflecting higher natural gas prices.

Irving, Texas-based Exxon Mobil reported net income for the first quarter of $9.10 billion or $2.10 per share, down from $9.50 billion or $2.12 per share in the prior-year quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $1.88 per share in the quarter. Analysts' estimates typically exclude one-time items.

Total revenues and other income for the quarter declined 1 percent to $106.77 billion from $108.36 billion in the same quarter last year. Analysts had a consensus revenue estimate of $109.76 billion.

Upstream, or exploration and production earnings for the quarter rose 11 percent from the year-ago quarter to $7.78 billion, primarily reflecting higher natural gas realizations.

Downstream, or refining and marketing earnings declined 47 percent from last year to $813 million, hurt by weaker margins, particularly in refining. Chemical segment earnings decreased 8 percent to $1.05 billion, reflecting weak margins.

The company's oil-equivalent production declined 5.6 percent from last year to 4,151 thousand of oil equivalent barrels per day or koebd. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 2.9 percent.

Liquids production declined to 2,148 thousands of barrels per day or kbd from the prior year's 2,193 kbd. The Abu Dhabi onshore concession expiry reduced volumes by 118 kbd.

Natural gas production for the quarter was 12,016 millions of cubic feet per day or mcfd, lower than last year's 13,213 mcfd, due to lower demand.

Exxon Mobil's capital and exploration expenditures for the quarter decreased 28 percent from the year-ago quarter to $8.44 billion.

Meanwhile, ConocoPhillips (COP) reported a profit for the first quarter that declined slightly from last year despite higher revenues. However, both adjusted earnings per share and quarterly revenues topped analysts' expectations, reflecting higher natural gas and bitumen prices.

The Houston, Texas-based oil company reported first-quarter net earnings of $2.12 billion or $1.71 per share, down from $2.14 billion or $1.73 per share in the prior-year quarter.

Special items for the latest quarter primarily related to unfavorable impacts from transportation and storage capacity agreements, and pending claims in the Lower 48 and Latin America segment.

Excluding items, adjusted earnings for the quarter were $2.25 billion or $1.81 per share, compared to $1.75 billion or $1.42 per share in the year-ago quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $1.56 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues and other income for the quarter increased 10 percent to $16.05 billion from $14.65 billion in the same quarter last year, and beat analysts' consensus estimate of $15.13 billion for the quarter.

Total production for the quarter declined 2 percent to 1,568 MBOED from 1,596 MBOED in the prior-year period.

However, production from continuing operations, excluding Libya, for the first quarter of 2014 was 1,530 MBOED, an increase of 24 MBOED compared with the same period a year ago. Adjusted for dispositions and downtime, production increased by 41 MBOED or 3 percent.

The company's total realized price for the quarter was $71.21 per barrel of oil equivalent or BOE, higher than $68.57 per BOE in the prior-year quarter. The higher realized price reflects higher overall natural gas, bitumen and natural gas liquids prices, partially offset by lower realized crude prices.

Looking ahead to the second quarter, ConocoPhillips forecast production from continuing operations, excluding Libya, in a range of 1,490 MBOED to 1,540 MBOED, reflecting planned downtime and turnaround activity.

For 2014, ConocoPhillips maintained its outlook for production from continuing operations, excluding Libya, in a range of 1,510 MBOED to 1,550 MBOED.

XOM is currently trading at $101.97, down $0.44 or 0.43 percent on a volume of 3.53 million shares. COP is currently trading at $74.69, up $0.38 or 0.51 percent on a volume of 2.08 million shares.