U.S. energy company ConocoPhillips narrowed its loss for the fourth quarter 2016 when compared to the same period in 2015.
The company on Thursday reported a fourth quarter 2016 net loss of $35 million, compared with a fourth quarter 2015 net loss of $3.5 billion.
Excluding special items, fourth-quarter 2016 adjusted earnings were a net loss of $318 million, compared with a fourth-quarter 2015 adjusted net loss of $1.1 billion.
ConocoPhillip’s full year loss was also reduced amounting to $3.6 billion in 2016, versus a full-year 2015 net loss of $4.4 billion.
“Our recent performance highlights the significant changes we’ve made as a company to respond to a world of lower and more volatile commodity prices,” said Ryan Lance, chairman and chief executive officer.
Earnings were higher compared with the fourth quarter of 2015 due to lower non-cash impairments, which were treated as special items, higher realized prices and lower exploration expenses, the company explained.
Production excluding Libya for the fourth quarter of 2016 was 1,587 thousand barrels of oil equivalent per day (mboed), a decrease of 12 mboed compared with the same period a year ago. According to the company, the decrease was the result of normal field decline and dispositions, partly offset by new production from major projects and development programs, improved well performance, and lower downtime.
For the current full year, the company expects its production to be 1,540 to 1,570 mboed. This results in flat to 2 percent growth compared with full-year 2016 production, excluding Libya, of 1,540 mboed when adjusted for 2016 dispositions of 27 mboed.
Guidance for production and operating expenses is $6.1 billion, which results in adjusted operating cost guidance of $6 billion.
The company’s 2017 guidance for capital expenditures is $5 billion; corporate segment net expense is $1.3 billion or $1.2 billion adjusted corporate segment net expense; depreciation, depletion and amortization is $8 billion; and exploration dry hole and leasehold impairment expense is $0.2 billion.