ConocoPhillips releases 2020 earnings report, sets sustaining capital program for 2021

ANCHORAGE, Alaska (KTUU) - ConocoPhillips has announced its fourth-quarter results, its full-year results and its quarterly dividend all for the year 2020. There is a significant industry-wide downturn in 2020 in the energy company, largely due to the coronavirus pandemic.

“I want to thank our workforce for their efforts in the face of a most challenging year,” says Ryan Lance, chairman and chief executive officer, in a prepared statement. “Throughout 2020, they protected each other, helped mitigate the spread of COVID-19 and safely executed our business as we adapted to changing market conditions.”

For fourth-quarter 2020, the company reports a loss of $0.8 billion, a little more than in 2019 after reporting a loss of $0.7 billion. ConocoPhillips says this excludes special items, such as non-cash impairments related to the Alaska North Slope Gas assets, non-core assets in Lower 48 and international exploration-related expenses.

ConocoPhillips says fourth-quarter adjusted earnings for 2020 were a loss of $0.2 billion, compared with the 2019 fourth-quarter adjusted earnings loss of $0.8 billion.

“There was nothing easy about 2020, but the lessons from the year served to strengthen our conviction that ConocoPhillips offers the right value proposition for this volatile business,” says Lance. “Free cash flow generation, a strong balance sheet, commitment to differential returns of and on capital and ESG leadership.”

The company announced its full-year 2020 earnings were a loss of $2.7 billion, comparing it to 2019′s $7.2 billion.

Again, excluding special items, the full-year 2020 adjusted earnings were a loss of $1 billion, according to the company, compared to $4 billion in 2019.

The company announced it has set a 2021 operating plan capital budget of $5.5 billion. It includes $5.1 billion to sustain current production and $0.4 billion for investment in major projects, in addition to continual exploration appraisal activity.

For additional information on the operating plan capital, you can click here.

“We believe setting a sustaining capital program for 2021 is the right approach for our company,” says Lance. “It clearly demonstrates our commitment to free cash flow generation and creates flexibility to return additional capital to shareholders at higher prices.”

According to the ConocoPhillips website, the company had operations and activities in 15 countries, $63 billion of total assets and approximately 9,700 employees as of Dec. 31, 2020.