ConocoPhillips’ profit up with oil prices

Houston energy company’s earnings increase 50 percent

ConocoPhillips reported that its first-quarter profit jumped more than 50 percent from a year ago as crude prices rose and the energy sector continued to rebound.

ConocoPhillips said it earned $888 million in the first three months of 2018, compared with $586 million during the same period in 2017.

The Houston oil and gas explorer said it is increasing its oil and gas production volumes for the rest of the year as crude prices are expected to hold relatively steady.

To satisfy investors, ConocoPhillips also recently increased its share buyback program to improve stock values.

“We continue to differentiate ourselves by executing on our strategic, financial and operational plans,” ConocoPhillips Chairman and CEO Ryan Lance said. “We safely delivered our plan again this quarter, while generating a strong improvement in free cash flow, reducing our debt and returning over 30 percent of cash from operations to shareholders through our dividend and buyback program.”

In recent months, ConocoPhillips has expanded operations in recent months in Canada and Alaska, as well as in the emerging Austin Chalk shale play in Louisiana and Texas.

ConocoPhillips also said it won a $2 billion arbitration award against Venezuela's state oil company, although collecting on it might be difficult. The oil company, PDVSA, is struggling financially under the weight of falling production, U.S. sanctions and Venezuela’s collapsing economy.

“ConocoPhillips will pursue enforcement and seek financial recovery of its award to the full extent of the law,” the company said in a statement.