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ConocoPhillips posts profits and targets more production for 4Q

ConocoPhillips

ConocoPhillips, the US oil major, announced this Tuesday during a conference call that it posted strong financial performance during 3Q. The company expects to increase oil production for the next quarter and close Shell’s Permian Basin assets acquisition.

Firstly, the company posted adjusted earnings of $1.77 per share. This beat expectation of $1.51 per share, according to Refinitiv data reviewed by Reuters. The company posted overall earnings of $2,4 billion during the quarter; compared to a $0,5 billion loss during last year’s same period.

Alike Bp, Valero, and other oil companies, ConocoPhillips’ financial performance were boosted by the oil prices rally.

As reported previously, oil prices have surged more than 60% this year, reaching $86 per barrel during October; the highest level since 2018, and recovering fully after the full blow from the pandemic.

About the matter, Ryan Lance, the company’s CEO, said during the conference that “demand offers some pretty constructive tailwinds for the industry.” He further remarked that the company is evaluating the production targets for next year.

Also recommended for you: Bp beats estimations and posts billionaire gains in 3Q. Click here to read.

ConocoPhillips looking forward to close Shell’s acquisition

In fact, the company plans to keep the drilling rigs rising steadily until the close of the $9,5 billion acquisition of Shell’s Permian assets. The closing is expected for the current quarter of the year.

Furthermore, the company forecasts 4Q oil production of 1,53 million barrel of oil equivalent (boe) per day; and 1.57 million boe per day, excluding Libya and any impact from the Shell deal. In contrast, during 3Q, ConocoPhillips’ production rose around 41,36% to 1,51 million boe per day; while the total average realized price surged nearly 84%.

On the other hand, Senior Vice President Dominic Macklon said ConocoPhillips wouldn’t focus on Scope 3 emissions, those released by the use of its products. Macklon said the company does not address consumer demand and would shift supply to less accountable producers and jurisdictions.

Nevertheless, ConocoPhillips has outlined net-zero 2050 goals for Scope 1 emissions, including its operations and Scope 2 emissions, which account for the power generation to run its facilities.

Finally, Lance, CEO, said. “While we benefited from the constructive price environment, the quarter’s important feature was that our underlying performance achieved our ‘new’ baseline for ConocoPhillips post-Concho.” About Shell’s acquisition, he said. “This transaction will spur another phase of positive performance as we head into 2022 and further strengthen our ability to deliver our distinctive triple mandate: meet future energy demand with the lowest cost of supply production through the energy transition, deliver competitive returns and meet our net-zero ambition on operational emissions.”

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