Nov 5 (Reuters) – ConocoPhillips raised its quarterly dividend by 11% and beat Wall Street estimates for third-quarter adjusted profit on Thursday, as stronger commodity prices and cost-cutting measures helped offset a decline in its output.
Shares of the largest US independent oil and gas producer were up over 1% in premarket trading.
Benchmark Brent crude averaged about $89.27 per barrel during the July-to-September period, up more than 31% from a year earlier, driven by geopolitical tensions in the Middle East that raised concerns about global oil supplies.
The company’s average realized price was $61.40 per barrel of oil equivalent for the quarter, 32% higher than a year earlier.
Its production for the reported quarter was 2.3 million barrels of oil equivalent per day (boepd), compared with 2.4 million boepd a year earlier.
ConocoPhillips forecast fourth-quarter production between 2.32 million boepd and 2.36 million boepd.
The company raised its quarterly ordinary dividend to 93 cents per share from 84 cents a year earlier, effective with its fourth-quarter payout due on December 1.
Last year, ConocoPhillips said it would cut 20% to 25% of its workforce to streamline operations and reduce costs following its acquisition of Marathon Oil. In October, it informed employees and contractors in Canada of workforce reductions.
The company also said it was evaluating a potential sale of its Norway business and the Teesside asset in the UK after receiving an unsolicited offer, although it did not identify the bidder or disclose financial details.
The company posted an adjusted profit of $3.27 per share for the three months ended September 30. Analysts on average estimated $2.97 per share, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Joyjeet Das)
