U.S. oil and gas company
) released its guidance for fourth-quarter production.
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The company reported that poor weather conditions in the
continental U.S. and North Sea will negatively impact its
expected production for the fourth quarter. Notably, significant
weather-related downtime in several operational areas has lately
disrupted truck traffic and abandoned some wells.
In view of these challenges and turbulent weather in that region,
ConocoPhillips also lowered its output at its huge Ekofisk field
in the North Sea last month.
ConocoPhillips expects fourth-quarter output from continuing
operations at 1,475 thousand barrels oil equivalent per day
(Mboed), down from its earlier forecast of 1,485-1,525 Mboed.
The weather adversities are not likely to have a long-term effect
on output and 2014 guidance for continuing operations remains
unchanged at about 1,600 Mboed. This production estimate consists
of 50 Mboed from the Es Sider Terminal in Libya, which remains
suspended owing to regional conflicts.
With leading positions in both natural gas and heavy crude oil in
North America, as well as a legacy position in the North Sea and
growing exposure to lucrative international regions,
ConocoPhillips expects to replace reserves and sustain production
growth over the long term.
The Houston-based company is also poised to benefit from a
pipeline of projects in Gulf of Mexico, Malaysia, the liquefied
natural gas project in Australia, the U.K., Norway, and the
Canadian oil sands, apart from the US Lower 48 liquids-rich
plays. These ramped-up activities are expected to fuel its
long-term production growth.
The completion of the
) spin-off has shifted ConocoPhillips' total focus to upstream
operations. This is likely to reduce its earnings volatility but
increase its dependence on oil and gas prices.
ConocoPhillips carries a Zacks Rank #3 (Hold). Some better-ranked
stocks in the oil and gas sector include
Stone Energy Corp.
Helmerich & Payne, Inc.
). Both these stocks hold a Zacks Rank #1 (Strong Buy).