Higher energy prices drive ConocoPhillips' quarterly profit

US OIL producer ConocoPhillips topped market estimates for fourth-quarter profit on Thursday (Feb 3) and boosted its plan for shareholder returns by US$1 billion, as it benefited from sharply higher oil and gas prices.

Easing of global travel restrictions and tight supplies have sent crude oil prices to 7-year highs, lifting earnings of shale producers including ConocoPhillips and helping many of them shore up cash to boost investor returns.

ConocoPhillips, which made two multi-billion dollar acquisitions over the last two years, said its production, excluding Libya, rose to 1.6 million barrels of oil equivalent per day (boepd) in the fourth quarter, up by 423,000 boepd from last year.

Most of the increase in the company's output came from the Permian, the top US oilfield, where the company acquired Shell Plc's assets for US$8.7 billion during the quarter.

ConocoPhillips' total average realised price was US$65.56 per barrel equivalent, up 97 per cent.

The company, which boosted its plans for shareholder returns to US$8 billion, said the planned increase will be implemented mainly through share repurchases and variable dividends.

Top US oil producer Exxon launched a US$10 billion share buyback plan earlier this week.

ConocoPhillips posted adjusted profit of US$2.27 per share for the three months ended Dec 31, higher than analysts' average estimate of US$2.20 per share, according to Refinitiv data. REUTERS