(Adds details from conference call, background)
Jan 31 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
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