Exxon Mobil Corp. (XOM) on Thursday reported a slight increase in profit for the first quarter as higher margins helped offset lower revenues and a decline in oil and gas production. Earnings per share beat analysts' expectations, while revenues missed their estimates. The company hiked its quarterly dividend by 11 percent.
Meanwhile, ConocoPhillips (COP) reported a 27 percent decline in profit for the first quarter, reflecting the impact of asset sales in addition to lower oil and gas production as well as crude prices.
Irving, Texas-based Exxon Mobil's oil-equivalent production for the quarter declined 3.5 percent from last year to 4,395 thousands of oil equivalent barrels per day or koebd. Excluding the impacts of entitlement volumes, OPEC quota effects and disinvestments, production decreased 1.2 percent.
Liquids production declined 1 percent from the year-ago period, while natural gas production decreased 6 percent. The company's petroleum product sales decreased 8 percent, reflecting the Japan restructuring and divestment-related impacts.
Exxon Mobil's first-quarter net income was $9.50 billion or $2.12 per share, up from $9.45 billion or $2.00 per share in the year-ago period. On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $2.05 per share for the quarter. Analysts' estimates typically exclude one-time items.
However, total revenues and other income for the quarter declined 12 percent to $108.81 billion from $124.05 billion in the year-ago period. Analysts had a consensus revenue estimate of $119.83 billion.
Upstream or exploration and production earnings declined 10 percent from the year-ago period to $7.04 billion, reflecting lower liquids realizations and higher operating expenses. These were partly offset by improved natural gas realizations.
Downstream or refining and marketing earnings decreased 3 percent to $1.55 billion on stronger margins, mainly in refining. But this was more than offset by volume and mix effects in addition to lower gains on asset sales, higher expenses and foreign exchange impacts.
Chemical segment earnings surged 62 percent from the prior-year period to $1.14 billion. The increase reflects higher margins, mainly commodities, in addition to gain on asset sales.
The company's capital and exploration expenditures for the quarter surged 33 percent to $11.78 billion, including $3.1 billion for the acquisition of Celtic Exploration Ltd.
During the first quarter, Exxon Mobil distributed $7.6 billion to shareholders through dividends and share purchases to reduce shares outstanding. The company currently anticipates share purchases of $4 billion in the second quarter.
Exxon Mobil's board of directors declared a second-quarter cash dividend of $0.63 per share on the company's common stock. The dividend is payable on June 10 to shareholders of record at the close of business on May 13. This represents an 11 percent increase from dividend of $0.57 per share paid in the preceding quarter.
Meanwhile, Houston, Texas-based ConocoPhillips' first-quarter earnings declined to $2.14 billion or $1.73 per share from $2.94 billion or $2.27 per share in the prior-year period. The prior-year quarter's results included earnings of $0.7 billion from downstream operations prior to the separation of Phillips 66 on April 30, 2012.
Excluding special items, adjusted earnings were $1.75 billion or $1.42 per share, compared to $1.78 billion or $1.38 per share in the same period last year. Special items for the latest quarter primarily related to asset sales and discontinued operations. On average, analysts expected the company to report earnings of $1.41 per share.
Total revenues and other income declined 9 percent to $14.65 billion from $16.08 billion in the year-ago period. Analysts had a consensus revenue estimate of $13.57 billion.
ConocoPhillips' production from continuing operations for the quarter declined 2 percent from the year-ago period to 1,56 MBOED. Adjusted for 2012 completed asset dispositions, production grew by 19 MBOED compared to the same period last year. Total realized price decreased 3 percent from the prior-year quarter to $68.57 per barrel of oil equivalent or BOE.
Looking ahead to the second quarter, ConocoPhillips forecasts production from continuing operations in a range of 1,440 to 1,470 MBOED, reflecting planned downtime and turnaround activity.
For fiscal 2013, ConocoPhillips now projects production from continuing operations in a range of 1,485 to 1,520 MBOED. Earlier, the company forecast full-year production from continuing operations of 1,475 to 1,525 MBOED.
ConocoPhillips has announced plans to dispose of its interests in Kashagan and its Algeria and Nigeria businesses. The company expects these transactions to close in 2013, generating expected proceeds of about $8.5 billion.
In Thursday's regular session, XOM is trading at $88.45, down $0.98 or 1.10 percent on a volume of 2.98 million shares. COP is trading at $58.21, down $0.05 or 0.09 percent on a volume of 1.17 million shares.
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