(Reuters)-Tuesday ConocoPhillips announced first-quarter profits, supported by rising oil and gas prices and production.
Due to the recovery of fuel demand due to the pandemic, the price of crude oil traded worldwide has exceeded $ 70, making oil and gas producers profitable.
But unlike previous cycles, producers chose to pay more to shareholders and reduce debt rather than spending on higher-priced production.
ConocoPhillips raised its share buyback plan by $ 1 billion in June, increasing the expected savings from two acquisitions of Permian basin producer Concho for $ 10 billion.
Excluding Libya, the company’s production increased 4% from the first quarter to the second quarter to 1.55 million boe per day.
In the three months to June 30, oil and gas prices rose 10.3% to an average of $ 50.03 per barrel of oil equivalent (boe), according to ConocoPhillips (NYSE :).
Current quarterly production is expected to be between 1.48 million boe and 1.52 million boe per day, including seasonal maintenance plans for Alaska and the Asia Pacific region.
The company has reduced its capital investment in 2021 by $ 200 million from its previous forecast of $ 5.5 billion in June, and estimates that adjusted operating costs are $ 6.1 billion, down $ 100 million.
Adjusted earnings increased from $ 902 million in the first quarter (69 cents per share) to $ 1.72 billion in the second quarter ($ 1.27 per share).
Analysts estimated an average profit of $ 1.10 per share, according to Refinitiv IBES estimates.
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ConocoPhillips outperforms Reuters output, higher price quotes
https://www.investing.com/news/stock-market-news/conocophillips-posts-90-rise-in-profit-on-higher-prices-output-2577199 ConocoPhillips outperforms Reuters output, higher price quotes