Higher oil prices helped ConocoPhillips (NYSE:COP) to turn in a second-quarter profit compared to a loss for the same period last year.
ConocoPhillips reported on Thursday earnings of US$1.6 billion, or US$1.39 per share for Q2 2018, compared with a second-quarter 2017 loss of US$3.4 billion, or a loss of US$2.78 per share.
The company's total realized price was US$54.32 per barrel of oil equivalent (boe) in the second quarter of 2018, compared with US$36.08 per boe in the second quarter of 2017, on the back of stronger prices and a more liquids-weighted portfolio.
ConocoPhillips' cash from operations came in at US$3.16 billion, exceeding capital expenditures, dividends, and share repurchases.
Thanks to the higher WTI oil prices, the U.S. oil producer also raised its capital guidance and production outlook for this year.
ConocoPhillips is adjusting its capital guidance to US$6 billion from US$5.5 billion, reflecting a higher US$65 WTI per barrel price environment versus the US$50 WTI per barrel initially assumed.
The company also raised its full-year 2018 production guidance to between 1.225 million barrels of oil equivalent per day (boed) and 1.255 million boed, to reflect the higher-than-budgeted partner-operated activity, improved performance across several operating areas, and completion of the Alaska Western North Slope bolt-on acquisition. The previous production target for this year was between 1.2 million boed and 1.24 million boed.
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"We're benefitting from higher oil prices, but also driving underlying cash flow expansion. In accordance with our priorities, we've differentially allocated excess cash toward debt reduction and distributions, while continuing to grow our diversified, low cost of supply resource base," said Ryan Lance, chairman and chief executive officer at ConocoPhillips.
"Since we launched our disciplined strategy almost two years ago, we've met or exceeded all our key strategic milestones. We achieved our debt target 18 months ahead of plan, we've outperformed on our target payout to shareholders, we're executing our operating plan and remain committed to our disciplined approach to the business," Lance said.
By Tsvetana Paraskova for Oilprice.com
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