ConocoPhillips (NYSE:COP) quarterly loss marked the widest lost in more than six years, amid a slump in the prices for oil and natural gas.
The company reported that it has further lowered 2015 expenditures by $800 million for an expected total of $10.2 billion. The biggest major U.S. oil company without refining operations posted a loss of $1.07 billion, or 87 cents per share for the latest quarter, as compared to a gain of $2.17 per share one year ago.
The continued low-prices of oil has hurt major oil companies, including Royal Dutch Shell, which announced a loss of $7.42 billion for the third quarter, highest loss in more than a decade. Chevron Corp. and Exxon Mobil Corp. are set to report their financial results on Friday.
Chief Executive Officer at ConocoPhillips, Ryan Lance said the company will keep supporting its dividend that has a yield of roughly 5.6 percent and is one of the highest among companies, which are engaged in the explore and production of oil and gas.
Few analysts are doubtful whether ConocoPhillips can continue paying investors while spendingon new drilling. An analyst at Edward Jones & Co., Brian Youngberg said this will be a challenge for the company. Youngberg added that operationallyConocoPhillips is doing well with what it can control, though it cannot control prices.
ConocoPhillips is one of the producers that opted asset sales in order to support their finances, continue drilling and pay dividends after oil prices plummeted by more than half, while natural gas plunged to the lowest level in three years.
The company reported a loss of 38 cents per share for the third quarter, excluding one-time items, matching the consensus forecast of 38-cent per share.
“We are accelerating actions to position our company for low and volatile prices, while improving the underlying performance of the business,” said Ryan Lance, chairman and chief executive officer. “We are on track to deliver seven major project startups and exceed our volume targets for the year. We are exercising flexibility in our capital program, dramatically lowering our cost structure and divesting assets that do not compete for funding in our portfolio. These steps will make us more flexible and resilient for the future. We remain committed to a compelling dividend, affordable growth and strong financial performance.”
