ConocoPhillips Slides after Earnings Beat

[Stocks-to-Watch]

ConocoPhillips (COP) shares fell 0.5% after the integrated oil company posted better than expected earnings, benefiting from high oil prices. Production fell slightly, and the company sold off numerous assets.

The company posted $2.02 of EPS after excluding one-time items, against analysts’ expectations for $1.77. Conoco’s worldwide production fell 1% after excluding dispositions and the suspension of operations in Libya and China. And Conoco continues to reduce its reliance on North American natural gas, as gas prices have fallen considerably.

“Due to the current market environment, the company continues to limit investments in North American natural gas production, which represented 26 percent of 2011 production,” the company said.

ConocoPhillips is in the midst of a major transition as it sells assets and spins off its downstream operations into a new business called Phillips 66. That transition is expected to happen by June.



Original Article Source by Barrons.com