ConocoPhillips Rides Higher Oil Prices to Surpass Earnings Expectations
ConocoPhillips' second-quarter earnings have surpassed expectations, driven by higher oil prices. The company reported net income of $3.9 billion, or $3.23 per share, more than double its earnings in the same period last year. Adjusted earnings came in at $3.24 per share, beating analyst estimates of $2.88 per share.
The average realized price for oil equivalent was $62.33 per barrel, a 36% increase from the prior year. Output for the quarter was lower than expected, down to 2,248 thousand barrels of oil equivalent per day, but the company stood by its full-year guidance. ConocoPhillips also announced that CEO Ryan Lance will retire after 14 years leading the company, with CFO Andy O'Brien taking over as CEO on September 1.
The company has completed the sale of noncore Lower 48 assets worth $1.7 billion and is ahead of schedule in meeting its $5 billion disposition target. ConocoPhillips also increased total shareholder distributions to $3.0 billion, including share repurchases and dividend payments. The company ended the quarter with cash and short-term investments of $8.1 billion.