ConocoPhillips (COP) Q2 Profit Tops the Street Estimate; Sale of Lukoil Assets Will Go Directly to Share Buybacks
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Price: $63.31 +1.41%
EPS Growth %: -29.7%
Financial Fact:
Purchased crude oil, natural gas and products: 5.83B
Today's EPS Names:
ZIOP, TIVO, QIHU, More
EPS Growth %: -29.7%
Financial Fact:
Purchased crude oil, natural gas and products: 5.83B
Today's EPS Names:
ZIOP, TIVO, QIHU, More
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ConocoPhillips (NYSE: COP) said Wednesday that it saw a better-than-expected quarterly profit, while adding that it will sell its entire stake in Russian oil company Lukoil as it tries to boost value to shareholders.
The third largest oil company in the U.S. said that it plans to divest $10 billion in assets as a part of a two-year plan, starting with the sale of its 40 percent stake in Lukoil back to the company, and selling the rest in open market transactions through the end of 2011. ConocoPhillips said that the proceeds will go directly to share repurchases.
“Given the expected business environment and our stated strategy to enhance returns and increase distributions, we have made the decision to sell our entire stake in Lukoil,” said Jim Mulva, chairman and chief executive officer of ConocoPhillips.
The Houston-based oil company also reported second-quarter earnings of $4.2 billion or $2.77 per share, about five times the profit of $859 million or 57 cents per share reported in the same quarter last year.
Excluding one-time items, the company earned $1.67 per share in the quarter, 11 cents better than the analyst estimate of $1.56 per share.
The company said that its refining unit showed a profit of $736 million in the second quarter, up significantly from $20 million last year, while profit from its oil and gas unit rose to $1.52 billion from $776 million.
“We had a solid quarter, with strong earnings and meaningful progress in executing our plans to create value,” said Mulva. “E&P delivered production volumes and costs in line with expectations, while our R&M business benefited from improved global refining and marketing margins and higher U.S. refining capacity utilization rates.”
Shares of ConocoPhillips are trading flat at $54.51 in late market trading on Wednesday.
The third largest oil company in the U.S. said that it plans to divest $10 billion in assets as a part of a two-year plan, starting with the sale of its 40 percent stake in Lukoil back to the company, and selling the rest in open market transactions through the end of 2011. ConocoPhillips said that the proceeds will go directly to share repurchases.
“Given the expected business environment and our stated strategy to enhance returns and increase distributions, we have made the decision to sell our entire stake in Lukoil,” said Jim Mulva, chairman and chief executive officer of ConocoPhillips.
The Houston-based oil company also reported second-quarter earnings of $4.2 billion or $2.77 per share, about five times the profit of $859 million or 57 cents per share reported in the same quarter last year.
Excluding one-time items, the company earned $1.67 per share in the quarter, 11 cents better than the analyst estimate of $1.56 per share.
The company said that its refining unit showed a profit of $736 million in the second quarter, up significantly from $20 million last year, while profit from its oil and gas unit rose to $1.52 billion from $776 million.
“We had a solid quarter, with strong earnings and meaningful progress in executing our plans to create value,” said Mulva. “E&P delivered production volumes and costs in line with expectations, while our R&M business benefited from improved global refining and marketing margins and higher U.S. refining capacity utilization rates.”
Shares of ConocoPhillips are trading flat at $54.51 in late market trading on Wednesday.
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