ConocoPhillips reports fourth-quarter 2020 loss of $800 million
ConocoPhillips reported a fourth-quarter 2020 loss of $800 million, compared with fourth-quarter 2019 earnings of $700 million. Excluding special items, fourth-quarter 2020 adjusted loss was $200 million, compared with fourth-quarter 2019 adjusted earnings of $800 million. Special items for the current quarter were primarily due to non-cash impairments related to the Alaska North Slope Gas asset and non-core assets in Lower 48, in addition to exploration-related expenses in other International, partially offset by an unrealized gain on Cenovus Energy equity.
Production excluding Libya for fourth-quarter 2020 was 1.14 MMboe/d, a decrease of 145,000 boe/d from the same period a year ago. After adjusting for closed acquisitions and dispositions, fourth-quarter 2020 production decreased 88,000 boe/d or 7% from the same period a year ago. This decrease was primarily due to normal field decline partially offset by new production from the Lower 48 and other development programs across the portfolio.
In the Lower 48, production averaged 395,000 boe/d including Eagle Ford of 183,000 boe/d, Bakken of 94,000 boe/d, and Permian of 88,000 boe/d. At Montney, the first phase of development continued as drilling and completion operations progressed as planned, with the third pad on track to come online in the first quarter of 2021. In Norway, in addition to achieving first oil at Tor II, the company made two significant discoveries with an estimated total resource of 125-390 MMboe. In China, first oil was achieved at Bohai Phase 4A.
Full-year results
Full-year 2020 earnings were a loss of $2.7 billion, compared with full-year 2019 earnings of $7.2 billion. Excluding special items, full-year 2020 adjusted earnings were a loss of $1.0 billion, compared with full-year 2019 adjusted earnings of $4.0 billion.
Production excluding Libya for 2020 was 1.12 MMboe/d. After adjusting for closed acquisitions and dispositions as well as estimated curtailments of 80,000 boe/d, of which 55,000 boe/d were in the Lower 48, production for 2020 would have been 1.17 million boe/d. This represents a 15,000 boe/d decrease from 2019. Production from Libya averaged 9,000 boe/d in 2020 as operations remained in force majeure for most of the year.
The company generated $1.3 billion in disposition proceeds, funded $4.7 billion of capital expenditures and investments (including bolt-on acquisitions of $500 million) and paid dividends of $1.8 billion.
On Jan. 15, 2021, ConocoPhillips closed the acquisition of Concho.
2021 capital budget
The company has set a 2021 operating plan capital budget of $5.5 billion. This includes $5.1 billion to sustain current production and $400 million for investment in major projects, primarily in Alaska, in addition to ongoing exploration appraisal activity.
