ConocoPhillips Beats Estimates On Higher Energy Prices

(RTTNews) - ConocoPhillips (COP) reported Thursday a profit for the third quarter that increased from last year, as higher natural gas and oil prices boosted sales for the energy giant.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. Meanwhile, production remained flat with last year.

"We have made significant progress toward positioning the company for 3 to 5 percent growth in volumes and margins. We successfully completed our major turnaround activity and have brought two major projects on line, with another three major projects expected to start production in the coming months," Chairman and CEO Ryan Lance said in a statement.

The Houston, Texas-based oil company reported earnings of $2.48 billion or $2.00 per share for the third quarter, higher than $1.8 billion or $1.46 per share in the prior-year quarter.

The results for the latest quarter included gains from asset sales in Canada and the Caribbean.

Excluding items, adjusted earnings for the quarter was $1.82 billion or $1.47 per share, compared to 1.70 billion or $1.38 per share in the year-ago quarter.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $1.45 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues and other income for the quarter increased to $15.47 billion from $14.71 billion in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $14.18 billion for the quarter.

Production from continuing operations for the quarter remained flat with last year at 1.470 million barrels of oil equivalent or BOE per day. Quarterly production, excluding the impact of dispositions, downtime and the impact from Libya, grew by 29 thousand BOE per day from last year.

The company's total realized price was $69.68 per barrel of oil equivalent (BOE), higher than $65.62 per BOE in the prior-year quarter.

Looking ahead to the fourth quarter, the company said its production outlook remains unchanged, with the exception of a 50 MBOED reduction for ongoing production disruptions in Libya.

For fiscal 2013, ConocoPhillips now projects production from continuing operations in a range of 1,505 to 1,515 MBOED, down from the prior guidance of 1,515 to 1,530 MBOED.

The company added that it plans to dispose of its interest in Kashagan and its Algeria and Nigeria businesses, which are expected to generate proceeds of about $8.9 billion plus customary adjustments.

Separately, ConocoPhillips announced the completion of the transaction with KazMunayGas or KMG for the sale of its 8.4 percent stake in the North Caspian Sea Production Sharing Agreement (Kashagan) for about $5.4 billion.

"We completed the sale of our Clyden and Phoenix Park assets, and continue to make progress on our announced disposition program of additional nonstrategic assets. We met our production targets, despite unplanned disruptions in Libya, and increased our dividend rate in early July, reaffirming our commitment to shareholders," Lance added.

COP closed Wednesday's regular trading session at $73.25, down $1.15 on a volume of 5.28 million shares. In the past 52-week period, the stock has been trading in a range of $53.95 to $74.59.