ConocoPhillips beats Q3 profits on higher production and share buyback
ConocoPhillips surpassed Wall Street's estimates for the third quarter profit on Thursday, as the Texas oil and gas company reaped benefits from higher production. Its shares rose 2.6% to $105.5 at premarket trading.
The volatility of commodity prices has been a major topic in recent months. This is due to several factors, including the escalating conflict between the United States and the Middle East. Other factors include the weak demand in China, the rate decisions made by the U.S. Federal Reserve, and OPEC's actions.
Benchmark Brent crude was $78.3 per barrel during the quarter reported, which is nearly 9% less than last year but still enough to allow oil and gas companies to drill profitably.
The quarter's production was 1.92 million barrels equivalent to oil per day (boepd), up 6% compared to 1.8 million boepd during the same quarter last year.
The company has increased its share repurchase authority by up to 20 billion dollars and reiterated a minimum shareholder return of $9 billion for 2024.
ConocoPhillips, which is awaiting the completion of its $22,5 billion takeover bid for rival Marathon Oil, has released this beat. The U.S. Federal Trade Commission is still reviewing the deal that was approved by Marathon Oil shareholders in August.
CEO Ryan Lance stated that the plans to close the deal in this quarter are still on track. The company also expects to exceed its initial synergy estimate of $500 million.
ConocoPhillips expects its total output for the year to be between 1,94 million and 1,95 million boepd compared to previously 1.93 million to 1.9 million.
According to LSEG, ConocoPhillips' adjusted profit for the three-month period ended September 30 was $1.78, compared to analysts' estimates of $1.64. (Reporting by Mrinalika Roy in Bengaluru; Editing by Pooja Desai)
(source: Reuters)
