ConocoPhillips beats expectations for the second quarter
ConocoPhillips [NYSE: COP] reported Q2 revenues of $16 billion, up from $14.6 billion for the same time last year, beating analysts' forecasts. Earnings per share increased to $1.71 versus estimates of $1.56/share. The company boosted the quarterly dividend by 5.8%.
The company has a strong presence in the Eagle Ford and Bakken shale, which helped increase production by 6.5% y/y. Earnings were also supported by higher natural gas prices last quarter.
In Canada, production increased to 284,000 barrels per day, boosted by improved operational performance at the phase E expansion of the Christina Lake steam-assisted gravity drainage (SAGD) operation. Further production increases are expected when phase F of Foster Creek comes online. Both Christina Lake and Foster Creek are joint ventures with Cenovus.
The company also reported that their Surmont 2 SAGD facility is on track for first steam in mid-2015. Once operational, the Surmont facility will have a total capacity of 136,000 bpd (Phase 1 & 2). The company also submitted an application to build Surmont 3 which would add another 125,000 bpd through three-stages, each capable of producing 45,000 bpd. Surmont is a 50/50 joint venture with Total E&P Canada.