Yemisi Izuora
Houston’s ConocoPhillips has reported a $1.6 billion profit in the second quarter as the oil and gas producer returns to healthy profitability this year following the recent oil bust.
ConocoPhillips’ profit is a big improvement from a $3.4 billion loss during the same three months last year, but also from a smaller $900 million profit during the first quarter of 2018.
As oil prices rebound, ConocoPhillips said it’s upping its oil production volumes guidance for 2018, excluding disruptions in volatile Libya, but also increasing its capital spending projection from $5.5 billion to $6 billion for the year.
While ConocoPhillips continues to grow in regions from Texas to Alaska, the company has opted to focus lately on debt reduction, share buybacks and increased dividend payouts in order to appease investors and solidify a healthy bottom line.
“We’ve positioned ConocoPhillips to deliver top-tier performance through cycles by focusing on free cash flow generation and following clear priorities to maximize returns,” said Ryan Lance, chairman and chief executive officer. “We’re benefitting from higher oil prices, but also driving underlying cash flow expansion.”
Meanwhile the oil producer ConocoPhillips said it’s preparing for “modest” job cuts in Houston and throughout the United States during September to help keep costs down.
While ConocoPhillips just posted a $1.6 billion net profit in the second quarter, the company has shed thousands of jobs in recent years and downsized its global investments to focus on more core regions, including West Texas’ booming Permian Basin, South Texas’ Eagle Ford shale and Alaska.
The oil and gas corporation has opted to focus lately on debt reduction, share buybacks and increased dividend payouts in order to appease investors and solidify a healthy bottom line.
The company began asking some employees this week for volunteers to accept severance buyouts.
“Employees have been informed that modest workforce reductions will occur in mid-September,” a corporate spokeswoman said. “We anticipate this will primarily impact Houston and Lower 48 employees. I do not have a specific number, as we are currently working through the staffing process.”
She added that ConocoPhillips has been transparent with employees that modest workforce reductions in certain areas of the business may be necessary from time-to-time in order to operate more efficiently.
ConocoPhillips has shrunk from a global workforce of 19,000 people four years ago to just more than 11,000 employees now. A few thousand jobs were eliminated during the recent oil bust, but many others transferred to other companies through asset sales.
Locally, ConocoPhillips employs just more than 2,200 people in the Houston area, which is down from about 3,600 workers in 2014.