ConocoPhillips (NYSE:COP) revised its full-year output projections slightly higher on Thursday, although its quarterly profit came in lower than expected. Like other U.S. oil producers, ConocoPhillips faced challenges from weakened oil and gas prices in recent months, but the company managed to offset some of the impact with increased production.
During the second quarter, ConocoPhillips (NYSE:COP) recorded a 6% rise in production, reaching 1.81 million barrels of oil equivalent per day (boepd), which was at the upper end of the company’s prior guidance. Notably, the U.S. Lower 48 states contributed to this achievement by registering record output.
Despite the overall growth, ConocoPhillips (NYSE:COP) lost its second-place position in the Permian basin, the nation’s top shale region, to Pioneer Natural Resources (PXD.N). In the same period, ConocoPhillips produced 709,000 boepd in the Permian, narrowly missing Pioneer’s 711,000 boepd. Chevron (NYSE:CVX) continued to lead the basin with a record output of 772,000 boepd.
The second-quarter output performance surpassed expectations, leading ConocoPhillips to revise its full-year production outlook for the second time this year. The company now anticipates a production range between 1.80 million boepd and 1.81 million boepd, compared to the earlier projection of 1.78 million boepd to 1.80 million boepd announced in May.
Additionally, ConocoPhillips adjusted its capital spending guidance, narrowing the range to between $10.8 billion and $11.2 billion, down from the previous estimate of $10.7 billion to $11.3 billion.
The company’s earnings per share in the second quarter declined by more than half to $1.84, primarily due to a 39% decrease in the average price of its oil and gas, which stood at $54.50 per barrel of oil equivalent during the quarter. Analysts had, on average, expected earnings of $1.95 per share, as per Refinitiv data.
Following the news, ConocoPhillips stock experienced a 2.2% decline during premarket trading, reaching $113.01.
Notably, rival Occidental Petroleum (NYSE:OXY) also adjusted its full-year production forecast upwards on Wednesday but failed to meet second-quarter profit expectations due to the price slide.
Featured Image: Unsplash @ Martin Adams
Author Faith Yakubu 
