ConocoPhillips (COP) said first-quarter profit slipped, but
revenue rose, boosted by higher average selling prices for natural
gas and increased production at its continuing operations,
excluding Libya.
ConocoPhillips reported a profit of $2.12 billion, or $1.71 a
share, down from $2.14 billion, or $1.73 a share, a year earlier.
Excluding the impact of asset sales and other items, adjusted
earnings from continuing operations rose to $1.81 from $1.42. Total
revenue and other income increased 9.5% to $16.05 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.56 and revenue of $15.13 billion.
The oil and gas production and exploration company has been
selling noncore assets to focus on those with higher returns, such
as U.S. shale formations, which have been fueling a drilling
boom.
"Our operational performance was strong and our margins
continued to grow," Chairman and Chief Executive Ryan Lance said on
Thursday. "Production increased due to strong performance in our
North American unconventional plays, ongoing growth in our Canadian
liquids and major project ramp ups in the Europe segment."
ConocoPhillips late last year said it plans to spend $16.7
billion on capital projects in 2014, with the bulk of it directed
toward continuing oil and gas production in North America.
ConocoPhillips said about 39% of the budget will be directed to
development-drilling programs. Most of that portion will be spent
on U.S. formations such as Eagle Ford and Permian Basin in Texas
and Bakken in North Dakota, among others. In the latest reporting
period, combined production in Eagle Ford and Bakken rose 41%.
Conoco also from benefited from marketing third-party natural
gas, which contributed $100 million of after-tax income.
Production from continuing operations, excluding Libya, rose 24%
on an oil-equivalent basis during the quarter. Total average
realized prices increased 3.9% reflecting higher natural-gas,
bitumen and natural-gas-liquids price that offset lower crude
prices.
ConocoPhillips spun off its refining arm as Phillips 66 in 2012
as part of a multiyear revamp aimed at improving the company's
finances.
Write to Tess Stynes at tess.stynes@wsj.com
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