Conoco posts a five-fold profit leap

HOUSTON: US oil producer Conocophillips on Thursday reported a five-fold increase in profit from a year-ago that exceeded Wall Street estimates on high prices and acquisitions.

Conocopledgedtobumpupshareholderreturns by 25 per cent to $10 billion this year, but gave a weaker-than-expected outlook for full-year production despite raising capital spending.

The largest US oil independent is benefiting from selling its oil and gas at multi-year-high prices, from acquisitions that boosted its oil and gas production and from asset sales.

Conocooutshoneoilmajorslikeexxonmobilcorp, BP and Totalenergies in reporting record earnings from the commodity price volatility stoked by the war in Ukraine.

Shareswereup2%inpremarketustradingat$106 even as analysts raised concerns about the increase in the year’s capital spending budget. Results “will be viewed as fairly neutral,” RBC Capital Markets analystsscothanoldanddavispetrossaidinanote.

Thehouston-basedcompany’sadjustedearnings leapt to $4.29 billion, or $3.27 per share in the quarter through March 31, from $902 million, or 69 cents per share a year earlier, beating Wall Street estimates of $3.03 per share, according to Refinitiv IBES data.

It sold its oil and gas for $76.99 per barrel, 70 per cent higher than in the first quarter of 2021, reflecting benchmark crude’s jump above $100 per barrel this year on rising demand and supply worries over Russia’s invasion of Ukraine.

Conoco has a strong presence across conventional and unconventional plays in 16 countries, with big operations in the US Eagle Ford shale, Permian Basin and Bakken shale.