HOUSTON -- ConocoPhillips has reported $3.4 billion second-quarter earnings and $3.4 billion adjusted earnings. This compares with second-quarter 2010 earnings of $4.2 billion and adjusted earnings of $2.5 billion. "We had a solid quarter," said Jim Mulva, chairman and CEO. "Higher adjusted earnings and cash flow were driven by better commodity prices and refining margins. Production performance was strong and capacity utilization of our refineries exceeded 90%."
E&P's second-quarter 2011 adjusted earnings were higher, compared with the same period in 2010, primarily [image-nocss] due to stronger commodity prices, partially offset by higher taxes.
"Upstream operated well, and we are seeing the benefits of our focus on margins and returns," said Mulva. "While our production fell, the earnings impact was limited."
Midstream earnings of $130 million were more than double that of a year ago, primarily due to improved natural gas liquids prices.
During the second quarter of 2011, ConocoPhillips generated $6.3 billion in cash from operations. The company funded a $3.1 billion capital program, repurchased $3.1 billion of ConocoPhillips common stock and paid $0.9 billion in dividends. At June 30, 2011, the company's cash and short-term investments were $8.1 billion, including cash and cash equivalents of $5.5 billion. ConocoPhillips ended the quarter with debt of $23.2 billion. a
ConocoPhillips' six-month 2011 earnings were $6.4 billion, compared with $6.3 billion for the same period in 2010.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,900 employees, $160 billion of assets and $244 billion of annualized revenues as of June 30, 2011.
ConocoPhillips recently announced its board had approved pursuing the separation of the company's Exploration & Production (E&P) and Refining & Marketing (R&M) businesses into two leading energy companies. "This is consistent with our strategy to create differentiated value for our shareholders," said Mulva. "Both companies will be uniquely positioned in their respective industries, with the management focus, financial strength and technical capability to successfully invest in the industry's highest returning projects."
The upstream company will be the largest U.S. pure-play E&P business, positioned for profitable growth from a rich resource base and a portfolio of quality investment opportunities. The new downstream company will be a low-cost, integrated refining, marketing and transportation organization, with complex refining assets, an investment grade credit rating and significant financial flexibility.
"We believe our investors will see significant long-term benefit from this repositioning, and we look forward to providing additional information about the transaction in September," added Mulva.
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