ConocoPhillips Reports Severe Losses On Depressed Prices, Cuts Dividends And Capital Spending
In line with the market expectations, ConocoPhillips, the world’s largest independent exploration and production company by proved reserves and annual production, reported disappointing 2015 financial results, primarily due to plummeting commodity prices. The Houston-based company saw a significant decline in its revenue and earnings as depressed commodity prices created pressure on its price realizations during the year. Further, in the wake of a challenging outlook for the commodity markets, ConocoPhillips has announced a reduction in its quarterly dividend, as well as its capital spending for 2016, to preserve its cash flows for the tough quarters ahead. Taking a hint from the company’s actions, we expect to see further weakness in the company’s financials at least in the next couple of quarters. Let’s discuss the key highlights of ConocoPhillips’s 2015 earnings release and its outlook going forward.