ConocoPhillips delivers another strong quarter and boosts dividend by 6%
ConocoPhillips reported Q3 revenues of $2.7 billion, up from $2.5 billion for the same time last year. Sale of a Nigerian business unit contributed $1.4 billion to the bottom line. The company boosted its quarterly dividend again this quarter by 5.8%.
Total production in the third quarter was reported at 1,473 million barrels of oil equivalent (boe) per day. The company has a strong presence in the Eagle Ford and Bakken shale, which saw a production increase of 33% over the same period last year. The company realized a sale price of $64.78 per boe versus $69.68 for Q3-2013. ConocoPhillips plans to spend $16 billion in capital projects next year, down from $16.7 billion spent in 2014.
Canadian production in Q3 was reported at 276,000 boe per day. Phase F of Foster Creek saw first production in September, and is expected to ramp up to full production rates within 12 to 18 months. Foster Creek is a 50/50 joint ventures with Cenovus.
The company reported that their Surmont 2 SAGD facility remains 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 submitted an application to build Surmont 3 in the previous quarter, which would add another 125,000 bpd through three-stages. Surmont is a 50/50 joint venture with Total E&P Canada.
ConocoPhillips is the largest independent oil and gas producer in the world. The stock is listed on the NYSE (NYSE:COP) and currently yields a dividend of over 4%.