ConocoPhillips earns $585 million in second quarter
ConocoPhillips Co. reported adjusted earnings of $585 million from Alaska in the second quarter, an increase despite lower production and prices, and higher spending.
Production fell for all products.
Combined, ConocoPhillips produced 197,000 barrels of oil equivalent in Alaska during the quarter, down 8 percent year-over-year and nearly 10 percent quarter-over-quarter.
By product, ConocoPhillips produced 176,000 barrels of oil per day, down 7 percent year-over-year and quarter-over-quarter; 15,000 barrels of natural gas liquids per day, down 6 percent year-over-year and nearly 17 percent quarter-over-quarter; and 38 million cubic feet of natural gas, down 32 percent year-over-year and quarter-over-quarter.
Prices also predominately fell for all products. ConocoPhillips reported an average realized price of $106.09 per barrel for Alaska liquids during the quarter, down $6.29 year-over-year and $4.70 quarter over quarter, and an average price of $4.03 per thousand cubic feet of natural gas, up 10 cents year-over-year but down $1.17 quarter-over-quarter.
ConocoPhillips reported $283 million in capital expenditures and investments in Alaska during the quarter, up $81 million year-over-year and $21 million quarter-over-quarter.
The adjusted effective income tax rate for Alaska held steady at 35.6 percent.
Pioneer production up on Nuiqsut wells
Pioneer Natural Resources Inc. produced 4,209 net barrels of oil per day from its Oooguruk unit in the second quarter, down year-over-year but up quarter-over-quarter.
The Texas-based independent brought two wells online near the end of the quarter at a combined rate of 1,500 bpd. The wells helped the company surpass first quarter production of 3,707 bpd, but fell short of 4,875 bpd from the second quarter of 2012.
Pioneer drilled four development wells at Oooguruk earlier this year — three into the Nuiqsut formation and one into the shallower Torok formation. The two wells the company brought into regular production in the second quarter targeted the Nuiqsut, as did a third well that produced at 3,000 bpd for 40 days during the quarter but is currently shut-in for cleaning. The Torok well faced mechanical issue, which Pioneer is addressing.
The goal of the four-well program was to expand its use of mechanically diverted fracturing completion technologies at the offshore North Slope field in Harrison Bay.
See stories in Aug. 11 issue, available online at 11 a.m. Friday, Aug. 9, at www.PetroleumNews.com