ConocoPhillips Q3 preview: High expectations as upstream focus drives growth

What happened

ConocoPhillips is scheduled to report third-quarter results before markets open on Thursday. Analysts expect earnings per share of $3.05, up 89.4% year over year, and revenue of $18.96 billion. The company focuses mainly on oil and gas production rather than refining and chemicals.

Confirmed

Global impact / market context

Because ConocoPhillips concentrates on producing oil and gas, its results and revenue are more directly exposed to changes in those prices than companies with large refining and chemicals businesses. Strong production and cost control could support earnings, while price weakness could quickly pressure them.

Analyst inference

The preview describes high earnings expectations and notes that oil and gas prices have recently supported the stock amid geopolitical and supply concerns. It also points to possible changes in federal spending, trade policy, and regulation after U.S. midterm elections as issues for energy companies.

Confirmed

What to watch

1. Compare reported earnings per share and revenue with analysts’ expectations of $3.05 and $18.96 billion; any shortfall could challenge the growth outlook described in the preview. Analyst inference
2. Listen for management’s comments on production growth and cost management, the stated supports for the Buy rating, and whether either is changing. Analyst inference
3. Watch for details on planned Canadian job cuts: the article says the number affected is unclear, following reductions there late last year. Confirmed

Evidence

• seekingalpha.com