A couple earnings releases out this morning – one from ConocoPhillips and the other from Precision Drilling.
Here are a few quick things which we found interesting:
ConocoPhillips
- ConocoPhillips curtailments for May expected to be 265,000 b/d and 460,000 b/d (across L48, Surmont and in June, Alaska).
- To put these curtailments in perspective, COP production in Q1 was 1,278,000 b/d.
- The volume and duration of curtailments announced by all E&P’s is key.
- COP states future curtailment decisions will be made on a month-by-month basis.
- Company spent $1.65B in Capex. We believe the 2020 budget is still ~$6.6B, but we’ll see if that changes on today’s call.
- Press release does not include any activity metrics.
- Conference call at 11am CT.
Precision Drilling
- No operational or financial guidance in the release.
- The company generated revenue of $379M and EBITDA of $102M.
- Adjusted EBITDA closer to $111M if you add back restructuring charges.
- Q1 U.S. rig count averaged 55 rigs vs. 63 rigs in Q4.
- Q1 U.S. revenue/day = $23,878 (U.S. dollars). Cash margins = $9,344/day.
- Q1 Canadian rig count averaged 63 rigs vs. 43 rigs in Q4 and 48 rigs in Q1’19.
- Q1 Canadian revenue/day = $21,444. Canadian cash margins = $7,200/day.
- Company continues to pay down debt – a central tenet for the company.
- Debt declined by $41M and now totals $1.5B.
- Objective in 2020 is to reduce debt by $100M to $150M.
- Worth remembering that the bulk of the debt matures in December 2013 through December 2015.
- Cash increased to $97M
- PDS efforts to reduce expenses and expenditures are consistent with peers.
- The 2020 capex budget is $48M, of which $12M was spent in Q1.
- By comparison, PDS spent $160M in 2019.
- All dollars for Precision are Canadian $$.
- Conference call at 1pm CT.
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