ConocoPhillips’ third-quarter earnings more than doubled to $4 billion as higher realized prices outweighed lower production, lifting shareholder returns even as daily output fell from a year earlier.
The company’s Nov. 5 Form 8-K reported an average realized price of $61.40 per barrel of oil equivalent, up 32% from the year-earlier quarter. Production averaged 2.302 million barrels of oil equivalent per day, a decline of 97,000. After accounting for acquisitions and dispositions, the decrease was 2%, ConocoPhillips said.
The company linked the volume picture to different operating forces across its business. Organic growth in the Lower 48 was more than offset by effects of the Middle East conflict on Qatar and higher royalties at Surmont, according to the release. Those offsets accompanied the lower production figure, while the increase in realized prices supported the earnings comparison.
On an adjusted basis, ConocoPhillips earned $3.9 billion, or $3.27 per share. In the same quarter last year, adjusted earnings were $2 billion, or $1.61 per share. The company said special items in the latest period primarily reflected a reversal of tax reserves.
Shareholder distributions totaled $3.4 billion: $2.4 billion through share repurchases and $1 billion in ordinary dividends. The company also raised its quarterly ordinary dividend 11%, setting the rate at 93 cents per share. The fourth-quarter payment is scheduled for Dec. 1 to shareholders of record Nov. 16.
For the fourth quarter, ConocoPhillips forecast production of 2.32 million to 2.36 million barrels of oil equivalent per day. Its full-year capital spending and adjusted operating cost guidance remained unchanged.
