UPDATE 1-ConocoPhillips beats estimates as output increases

Thu Aug 1, 2013 8:44am EDT

Aug 1 (Reuters) - ConocoPhillips reported a better-than-expected profit due to higher oil and gas output and raised its full-year production forecast.

Output from continuing operations rose to 1.51 million barrels of oil equivalent (BOE) per day in the second quarter from 1.49 million a year earlier, the company said on Thursday.

Conoco, which is spending heavily to boost crude production in the United States, said its output from the Eagle Ford shale field in Texas almost doubled to 121,000 BOE per day.

Shale basins in North America are a steady source of growth for oil and gas companies.

Conoco's combined oil and gas production in the Eagle Ford shale field, the Bakken shale field in North Dakota, and Permian Basin in Texas rose 47 percent in the second quarter.

The average price was flat at $66.82 per BOE.

Conoco is shifting its focus from low-margin natural gas to higher priced liquids in North America.

Net income fell 10 percent to $2.05 billion, or $1.65 per share. The prior year earnings included $500 million from downstream operations before the spinning off of Phillips 66 in May 2012.

Excluding one-time items, earnings were $1.41 per share, above the average analyst estimate of $1.29 per share, according to Thomson Reuters I/B/E/S.

Conoco raised its full-year production outlook from continuing operations to 1.52-1.53 million BOE per day, from 1.49-1.52 million.

The Houston-based company's shares were up about 1 percent at $65.56 before the bell.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.