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ConocoPhillips Q1 net, output drop on lower crude prices

Published: 09:01 25 Apr 2013 EDT

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ConocoPhillips (NYSE:COP), the largest independent U.S. oil and natural gas producer, said profit in the first quarter dropped as oil and natural gas output fell on lower crude prices.

Net income for the three months that ended March 31 dropped to $2.1 billion, or $1.73 a share, from $2.9 billion, or $2.27 a share, a year earlier, the Houston-based company said in a statement on Thursday. 

Excluding one-time items, first-quarter profit fell to $1.8 billion, or $1.42 a share, from $1.8 billion, or $1.38 a share, a year earlier, matching the $1.42 average of 20 estimates compiled by Bloomberg. 

The company’s total realized price in the January-to-March period fell to $68.57 a barrel of oil equivalent, compared to $70.78 per barrel of oil equivalent a year earlier.

Oil and gas output from continuing operations slid to 1.56 million barrels oil equivalent per day (boepd), from 1.58 million boepd a year earlier, according to the statement.

Combined production from its Eagle Ford, Bakken and Permian fields rose 42 percent over a year earlier, and oil sands production averaged 109 MBOED, up 30 per cent over the first quarter of last year.

Looking ahead, the company reaffirmed its output guidance, projecting second-quarter production from continuing operations to be 1.44 million to 1.47 million boepd. Full-year production from continuing operations is expected to be 1.48 million to 1.52 million boepd.

The company has announced plans to dispose of its interests in Kashagan and its Algeria and Nigeria businesses. These transactions are expected to close this year, generating expected proceeds of approximately $8.5 billion, it said.

“Our base business is operating to plan, our development programs and major projects are performing as expected," CEO Ryan Lance said in the statement. "We are on track to deliver production and margin improvements this year."

As of March 31, ConocoPhillips had operations in 30 countries, approximately 17,100 employees, debt of $21.7 billion and a debt-to-capital ratio of 31 percent.

The shares were unchanged in premarket trading in New York on Thursday after the report was released. 

The stock lost approximately 20 percent over the past 12 months through April 24, underperforming the Dow Jones Industrial Average index (INDEXDJX:.DJI) which gained 13 percent.

 

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