Shares of ConocoPhillips (COP) dipped by 1.4% in premarket trading on Thursday. The oil exploration and production company witnessed a decline in second-quarter profit and revenue, primarily due to falling prices. Despite reaching record production levels, ConocoPhillips reported net income of $2.23 billion, or $1.84 a share, which was lower than the $5.15 billion, or $3.96 a share, recorded in the same period last year.
Adjusted earnings per share for the quarter stood at $1.84, missing the FactSet consensus of $1.93. Total revenue also fell by 41.4% to $12.88 billion, below the expected $14.74 billion.
ConocoPhillips experienced a production increase of 6.7%, reaching a record daily output of 1.805 million barrels of oil equivalent (MMBOED). However, the average realized prices fell by 38% to $54.50 per barrel of oil equivalent. Despite these figures, the company is optimistic about its full-year outlook and has raised its production expectations to a range between 1.80 MMBOED and 1.81 MMBOED, up from the previous range of 1.78 MMBOED to 1.80 MMBOED.
Although ConocoPhillips’ stock has shown a 20.3% rally in the past three months until Wednesday, it is important to note that the S&P 500 has only gained 10.3% during the same period.
