Conocophillips beats profit estimates on crude price rally

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Nov 2 (Reuters) – Conocophillips (COP.N) on Tuesday reported a third-quarter profit that blew past Wall Street expectations, thanks to a rebound in crude prices to pre-pandemic levels after more than a year of depressed fuel demand.

Oil prices have climbed nearly 63% since the beginning of the year, driven by a rise in global demand and on supply bottlenecks, pushing Brent above $86 to its highest in nearly three years. The rally has been accompanied by sky-high gas prices around the world.

The company, which agreed to buy Royal Dutch Shell’s (RDSa.L) Permian basin assets in September, said its production, excluding Libya, rose 41.36% to 1.51 million barrel of oil equivalent (boe) per day in the third quarter.

It expects current-quarter production to stand between 1.53 million boe per day and to 1.57 million boe per day, excluding Libya as well as impacts from the pending Shell Permian acquisition.

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Prices for its oil and gas averaged $56.92 per boe in the quarter, compared with $30.94, a year earlier.

Conocophillips also lowered its 2021 depreciation, depletion and amortization expense outlook to $7.1 billion from its prior forecast of $7.4 billion, citing positive revisions to proved reserves due to higher commodity prices.

The Houston-Texas based company reported adjusted net income of $2.4 billion, or $1.77 per share, in the quarter ended Sept. 30, beating expectations of $1.51 per share, according to Refinitiv IBES data.

Conocophillips shares which have risen 86% so far this year, were up 0.95% in premarket trading.