ConoccoPhillips Reduces Eagle Ford Rig Count

ConocoPhillips Q2 Report
ConocoPhillips Q2 Report

ConocoPhillips released 2015 second quarter earnings that credited its operations in unconventional plays, such as the Eagle Ford, with production increases.

Related: ConocoPhillips Reports Q4 Losses

ConocoPhillips reported last week that quarterly production in the upper 48 states increased by 16 thousand barrels MBOED over the same period in 2014, to 556 MBOED. They credited the increase to growth in unconventional plays with the Eagle Ford and Bakken collectively delivering 242 MBOED for the quarter, a 16 percent increase compared with the 2014.

The company also followed through on its plan to reduce rigs across the board and is currently running six rigs in the Eagle Ford, four in the Bakken and three in the Permian.

In a Q2 conference call last week, executives from ConocoPhillips assured investors that despite the prolonged commodity pricing crisis, the company is solid and focused on navigating the sharp downturn with a long-term perspective.

Weak prices have certainly dealt us and the industry a significant headwind, but the reality is we don’t control prices. That said, there are many things we do control like how much capital we return to the shareholders, how much and where we spend the capital and the cost of running the business.
— Ryan M. Lance, Chairman & Chief Executive Officer

Lance elaborated that went ConocoPhillips has been able to cut capital for three years and take a $1 billion cost-cutting challenge all while continuing to meet our operational targets.

Conoco reports over 220,000 acres of core Eagle Ford properties in South Texas. 

Read more: ConocoPhillips and its Eagle Ford Operations

Q2 Highlights

  • Achieved second-quarter production of 1,595 MBOED
  • Eleven percent year-over-year reduction in operating costs
  • Announced reductions in future deepwater exploration spending
  • Lowering 2015 capital expenditures guidance from $11.5 billion to $11.0 billion and operating cost guidance from $9.2 billion to $8.9 billion