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Key Takeaways
- ConocoPhillips on Thursday reported record levels of production for the second quarter.
- However, the company’s revenue and net income fell short of analysts’ estimates and its shares fell.
- ConocoPhillips also said that its $22.5 billion acquisition of Marathon Oil is on track to close by the end of the fourth quarter despite a recent request for more information on the deal from the FTC.
ConocoPhillips (COP) on Thursday reported second-quarter results below analysts’ expectations and narrowed its full-year production outlook.
The energy giant said higher average prices helped it record a nearly 10% year-over-year revenue bump to $14.14 billion, while analysts had projected $14.6 billion, according to consensus estimates compiled by Visible Alpha. Net income rose 4% to $2.33 billion, below estimates of $2.36 billion.
Production Reached Record Levels in Q2
ConocoPhillips Chief Executive Officer (CEO) Ryan Lance said the company achieved record levels of production in the quarter at 1.95 million barrels of oil equivalent per day, 140,000 barrels per day more than last year.
The company narrowed its full-year average production range to 1.93 million to 1.94 million barrels per day from its prior outlook of 1.91 million to 1.95 million barrels per day.
ConocoPhillips Says Marathon Acquisition Still on Track
Lance also said that the company’s $22.5 billion acquisition of Marathon Oil (MRO), which was announced in May, is on track to be completed late in the fourth quarter of fiscal 2024.
However, the companies recently received a second request for information on the transaction from the Federal Trade Commission (FTC), suggesting the agency is considering whether the deal would be anti-competitive.
ConocoPhillips shares fell 1.5% to $109.52 as of 10:45 a.m. ET Thursday and are down about 6% in 2024.