(Reuters) -ConocoPhillips on Thursday raised its planned annual shareholder returns by $5 billion after the U.S. oil producer’s quarterly profit beat estimates on surging energy prices, sending shares up 3% in premarket trade.
Oil and gas prices have skyrocketed with Western sanctions on major producer Russia throttling supply amid a rebound in demand from pandemic lows.
Global crude benchmark Brent was trading at $96.81 a barrel on Thursday, around 25% higher this year.
Houston, Texas-based ConocoPhillips (NYSE:COP)’ average realized price per barrel of oil equivalent rose 77% to $88.57 in the quarter from a year earlier. The company has not hedged any of its oil and gas sales to make the most of higher market prices, it said.
ConocoPhillips now plans to return $15 billion to shareholders this year, joining oil major Chevron Corp (NYSE:CVX) and others in increasing payouts after years of pressure on shale drillers over low returns.
The company, which kept its spending forecast intact, slightly lowered its full-year production outlook on uncertainty in Libya.
The company’s second-quarter adjusted earnings of $3.91 per share beat Wall Street estimates of $3.80 per share, according to Refintiv IBES data.
Source:reuters