By Dow Jones Business News, October 31, 2013, 07:41:00 AM EDT
By Nathalie Tadena
ConocoPhillips' ( COP ) third-quarter earnings increased 38% as the exploration-and-production company's results were
boosted by a gain on an asset sale.
The company is in the midst of a three-year repositioning in which it has shed billions of dollars in assets and is
planning to divest itself of more operations as it seeks to focus on fast-growing shale plays in the U.S.
The quarter included gains from asset sales of the Clyden undeveloped oil sands leasehold in Canada and the Phoenix
Park midstream asset in Trinidad and Tobago. The company has also unveiled plans to sell its interest in the North
Caspian Sea Production Sharing Agreement as well as its Algeria and Nigeria businesses, deals that are expected to
generate about $8.9 billion in proceeds.
ConocoPhillips completed last year its spinoff of its downstream operations as Phillips 66 (PSX), which reported on
Wednesday that its third-quarter earnings declined 67% as it posted a loss in its refining segment as a result of weaker
ConocoPhillips's production from continuing operations was flat from the year-earlier period, as new production from
development programs and major projects was offset by normal field decline and the impact of disruption in Libya. It now
expects production for the year to reach 1.51 million to 1.52 million barrels of oil-equivalent a day, down from 1.52
million to 1.53 million.
ConocoPhillips reported a profit of $2.48 billion, or $2 a share, up from $1.8 billion, or $1.46 a share, a year
earlier. Excluding items such as asset-sale gains, pension settlement expenses and other items, adjusted earnings rose
to $1.47 from $1.38 a share.
Total revenue, which includes a $1.07 billion gain on dispositions, increased 5.1% to $15.47 billion. Sales and other
operating revenue slipped 3.5% to $13.64 billion.
Analysts polled by Thomson Reuters recently expected per-share earnings of $1.45 and revenue of $14.18 billion.
ConocoPhillips shares closed at $73.25 and were inactive premarket. The stock is up 26% so far this year.
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