ConocoPhillips misses profit estimates, boosts share buyback


The Phillips 66 gas station in Superior, Colorado, U.S., July 27, 2017. REUTERS/Rick Wilking

(Reuters) – U.S. oil and gas producer ConocoPhillips (COP.N) reported a lower-than-expected quarterly adjusted profit on Tuesday and boosted its share buyback program by $10 billion.

Investors have made higher returns a key priority, pressing oil and gas drillers to boost buybacks and dividends instead of growing production at a time when commodity pricing remains volatile.

Conoco said its realized price per barrel fell 11.3% in the quarter.

Oil prices have taken a hit from the prolonged trade war between the United States and China, and a glut of shale supply in North America.

The company confirmed it would spend $6.5 billion to $6.7 billion in 2020 and said it expects its annual production to range from 1.230 to 1.270 million barrels of oil equivalent per day (boe/d), which includes the impact of a recent third-party pipeline outage on the Kebabangan Field in Malaysia.

ConocoPhillips said in November it would boost its oil and gas production by about 3% per year, restrain annual spending to about $7 billion and return $50 billion to shareholders over the next decade.

The Houston-based company’s adjusted net income fell 36.5% to $831 million in the quarter ended Dec.31. as it bore the brunt of lower output and realized crude prices.

On a per share basis, it earned 76 cents, while analysts had expected a profit of 80 cents, according to IBES data from Refinitiv.

Total production, excluding Libya, fell by 24,000 boe/d to 1.289 million boe/d.

Reporting by Shanti S Nair in Bengaluru; Editing by Maju Samuel

Products You May Like

Articles You May Like

IDF confirms ‘decline in forces’ in southern Gaza
Ukraine nuclear plant drone strike prompts warning over risks
Total solar eclipse plunges parts of Mexico into darkness
North America awed by total solar eclipse
MP targeted in Westminster honeytrap resigns party whip

Leave a Reply

Your email address will not be published. Required fields are marked *