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ConocoPhillips (NYSE: COP) reported on Tuesday second-quarter earnings beating analyst estimates on the back of higher commodity prices and higher oil and gas production.
The U.S. company said today it posted adjusted earnings of $1.7 billion, or $1.27 per share, for the second quarter of 2021. This compares with an analyst consensus estimate of $1.10 per share earnings compiled by The Wall Street Journal, and with an adjusted loss of $1.0 billion, or a loss of $0.92 per share, for the second quarter last year.
ConocoPhillips benefited in Q2 2021 from the rally in commodity prices, which allowed it to generate more than double revenues from oil and gas, as well as a 566,000 barrels of oil equivalent per day (boepd) increase in production volumes. Production excluding Libya was 1.547 million boepd, thanks to no more curtailments in output as in Q2 2020, and to new production from the Lower 48, ConocoPhillips said.
The company’s production in the shale patch in Q2 2021 averaged 794,000 boepd, including 435,000 boepd from the Permian, 227,000 boepd from the Eagle Ford, and 95,000 boepd from the Bakken.
The company’s total average realized price was $50.03 per boe, which was a massive 117 percent jump from the $23.09 per boe realized in the second quarter of 2020, reflecting higher marker prices and improved realizations.
“We have a stronger, more flexible asset base and greater underlying efficiency resulting from the Concho acquisition and the restructuring work we’ve performed throughout our company. Our updated outlook comes at a time that we believe is a defining moment for the sector,” said Ryan Lance, ConocoPhillips chairman and chief executive officer.
ConocoPhillips becomes the latest U.S. oil and gas firm to beat analyst expectations for Q2, after Exxon and Chevron reported stronger-than-expected earnings on Friday. Chevron resumed share buybacks after posting a Q2 profit above estimates.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com