U.S. oil major ConocoPhillips has boosted its third quarter earnings on higher oil and gas prices and higher sales volumes.
ConocoPhillips on Thursday reported third-quarter 2018 earnings of $1.9 billion compared with third-quarter 2017 earnings of $0.4 billion.
Excluding special items, third-quarter 2018 adjusted earnings were $1.6 billion compared with third-quarter 2017 adjusted earnings of $0.2 billion.
“We’re delivering another year of strong performance by successfully executing our disciplined, returns-focused plan,” said Ryan Lance, chairman and chief executive officer.
Production excluding Libya for the third quarter of 2018 was 1,224 thousand barrels of oil equivalent per day (MBOED), an increase of 22 MBOED compared with the same period a year ago.
The third-quarter volume impact from closed dispositions was approximately 50 MBOED in 2017. Excluding this impact, underlying production increased 6 percent. The increase was primarily due to growth from the Big 3 unconventionals, development programs in Europe and Alaska, and ramp-up of major projects in Asia Pacific. These more than offset normal field decline.
Higher prices & sales volumes
According to the company, earnings increased versus the third quarter of 2017 primarily as a result of higher realized prices across all commodities, amounts recognized from the PDVSA arbitration settlement, and higher sales volumes. Sales volumes for the quarter exceeded production, resulting in a favorable impact to earnings of approximately $80 million. Adjusted earnings were improved compared with third-quarter 2017 primarily due to higher realized prices and sales volumes.
The company’s total realized price was $57.71 per barrel of oil equivalent (BOE), a 46 percent improvement compared with $39.49 per BOE in the third quarter of 2017, reflecting stronger marker prices and a more liquids-weighted portfolio.
Fourth-quarter 2018 production is expected to be 1,275 to 1,315 MBOED.
The company adjusted its 2018 capital guidance to $6.1 billion versus the prior guidance of $6 billion, reflecting higher partner-operated spend.