ConocoPhillips lifts dividend, raises output forecast after profit beat

ConocoPhillips increased its quarterly dividend on Thursday and raised its full-year production projection after posting earnings that were above expectations in the third quarter, thanks to lower costs and higher output which offset weaker oil price.

In premarket trading, shares of the United States' largest independent oil and natural gas producer rose by 1.5%.

The company's efforts to streamline operations, cut costs and save more than $1 billion from the Marathon Oil acquisition helped mitigate the effects of a 13% decline in Brent crude oil prices from a previous year.

The $22.5 billion transaction, which was completed last year by the company, strengthened its U.S. shale oil portfolio, and added assets to the Anadarko Basin, and Equatorial Guinée.

The Delaware and Eagle Ford Basins, which contribute to the U.S. onshore fields, have increased production in the third quarter by 482,000 barrels of equivalent oil per day (boepd) compared with the same period last year.

The company anticipates a fourth-quarter output between 2,30 million and 2,34 million boepd.

ConocoPhillips has increased its dividend to $0.84 a share, an increase of 8%. It also raised its production forecast for 2025 to 2.375 millions boepd from the previous range of 2.35-2.37million boepd.

The company also reduced its operating costs forecast for 2025 from $10.9 billion to $10.6 billion.

ConocoPhillips' preliminary outlook for the year 2026 targets about $12 billion of capital expenditure, $10,2 billion in operating expenses, and a 2% growth in production, as it advances large-scale initiatives, such as Alaska's Willow project and U.S. Gulf Coast Liquefied Natural Gas ventures.

According to data compiled and analyzed by LSEG, it posted an adjusted profit per share of $1.61 for the quarter ending September 30. This compares with analysts' estimates of $1.43. Reporting by Arunima in Bengaluru, Editing by Devika S.

(source: Reuters)