Shale oil producer ConocoPhillips posts greater quarterly revenue

© Reuters. FILE PHOTO: A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 6, 2022. REUTERS/Brendan McDermid

(Reuters) -ConocoPhillips reported a 23% jump in fourth-quarter profit on Thursday, as the U.S. shale producer benefited from higher prices for its on tight supplies and robust demand.

Shares of the company, which declared a variable dividend of 60 cents, rose 1% to $118.80 in premarket trade.

Crude prices remained elevated during 2022 from strong demand and shortages since Russia’s invasion of Ukraine, and analysts expect Western energy firms to show a combined $200 billion profit for the year.

Production was 1.758 million barrels of oil equivalent per day (boed) for the last three months of 2022, an increase of 150,000 boed from the same period a year ago.

ConocoPhillips (NYSE:) said it plans to return $11 billion to shareholders in 2023, while full-year production is expected to be between 1.76 million and 1.80 million boed.

The company expects capital expenditure to be between $10.7 billion and $11.3 billion this year, higher than 2022’s $10.2 billion.

ConocoPhillips expects current-quarter production to be between 1.72 million and 1.76 million boepd, which includes 35,000 boed of turnaround and stabilizer expansion in Eagle Ford basin.

Total average realized price was $71.05 per barrel of oil equivalent in the fourth quarter, ConocoPhillips said, 8% higher from a year earlier.

On an adjusted basis, the company posted a profit of $2.71 per share, missing the average analyst expectation of $2.81, according to Refinitv data, hurt by lower earnings from Canada.

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