ConocoPhillips COP has jumped 4.2% since reporting better-than-expected third-quarter earnings on Nov 6. Oil-equivalent production in the September quarter was more than our model predicted, which primarily backed the outperformance. Thus, the energy giant witnessed a strong operational performance in its upstream operations. Read our earnings blog: COP Beats Q3 Earnings Estimates, Hikes '25 Production Guidance.
Upstream Business of ConocoPhillips
ConocoPhillips is a well-known name in the upstream business, with a footprint in the United States' prolific oil and natural gas resources. In the Lower 48, which includes key resources such as the Delaware Basin, the Midland Basin and the Bakken, the energy giant has a robust presence, signaling a solid production outlook.
COP’s Q3 Production Rises
Total production averaged 2,399 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 1,917 MBoe/d. The figure also beat our estimate of 2,342.9 MBoe/d. Of the total output, almost 48% was crude oil. Overall production was higher than the year-ago level, primarily due to increased production in the Lower 48.
Crude oil production increased to 1,146 thousand barrels per day (MBbls/d) from the year-ago quarter’s 957 MBbls/d.
Natural gas liquids production totaled 436 MBbls/d, higher than the year-ago figure of 310 MBbls/d. Bitumen production for the quarter totaled 123 MBbls/d, up from 87 MBbls/d in the year-ago quarter.
The company’s natural gas production was 4,167 million cubic feet per day (MMcf/d), higher than the year-ago level of 3,381 MMcf/d.
Realized Prices Decline for COP
The average realized oil equivalent price decreased to $46.44 per barrel from $54.18 a year ago.
The average realized crude oil price was $66.13 per barrel, implying a decrease from the year-ago figure of $76.77. The figure was also below our projection of $67.07 per barrel.
The average realized natural gas price was $4.28 per thousand cubic feet, down from $4.42 reported in the year-ago quarter. Realized natural gas liquids price decreased to $19.20 per barrel from the year-ago quarter’s $21.93.
ConocoPhillips currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
2 Other Energy Majors: XOM, CVX
We are now at the end of the earnings season, with energy giants like Exxon Mobil Corporation XOM and Chevron Corporation CVX already having reported. Both ExxonMobil and Chevron topped the Zacks Consensus Estimate for earnings. For more details, read our blogs: ExxonMobil Beats Q3 Earnings Estimates, Boosts Dividend Again & Chevron Q3 Earnings Beat Estimates as Production Hits Record.
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Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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