- Taxes on some wealthy French top 100 pct of income: paper
- North Korea fires short-range missiles for two days in a row |
- Israel warns against Russian arms supply to Syria
- Winning ticket for $590.5 million Powerball lottery sold in Florida |
- Toyota plans to increase lithium-ion car battery output-Nikkei
UPDATE 1-Conoco shares off 4 percent; output forecast disappoints
(Adds details from conference call, background)
Jan 31 (Reuters) - ConocoPhillips shares were down 4 percent on Thursday, a day after the U.S. oil and natural gas company issued a production forecast that fell short of some Wall Street expectations.
Conoco is pursuing a strategy aimed at growing production and growing returns to shareholders. To achieve that aim, Conoco is shedding older, less-profitable assets like its Nigerian operations while investing in high-growth areas like the oil-producing Eagle Ford formation in South Texas.
The company has said its long-term production goal is for 3 to 5 percent growth, but output in the fourth quarter was flat at 1.6 million barrels of oil equivalent per day (boe) as asset dispostions weighed.
And on Wednesday Conoco said it sees full-year 2013 production of 1.475 million to 1.525 million boe per day.
Maintenance and seasonal factors will negatively affect production in the second and third quarters, while a rebound is seen in the fourth quarter as output from new projects is added, the company said on a Thursday conference call with analysts.
Analysts at Houston energy investment bank Tudor Pickering Holt characterized Conoco's production forecast as "negative." Tudor Pickering had expected full-year output of 1.531 million boe per day, it said in a note to clients.
Shares of Conoco dropped $2.57 to $58.52 in morning New York Stock Exchange trading. (Reporting By Anna Driver; Editing by Gerald E. McCormick and Bob Burgdorfer)
- Tweet this
- Share this
- Digg this