ConocoPhillips reported adjusted earnings of $627 million in Alaska in the second quarter, a decline year-over-year on falling production and increased capital expenses.
The largest producer in Alaska reported a 2 percent or 4,000 barrel of oil equivalent per day year-over-year decline in total quarterly production to 193,000 barrels of oil equivalent per day. Crude oil production fell nearly 3.5 percent to 170,000 barrels per day while natural gas production increased 18 percent to 45 million cubic feet per day.
ConocoPhillips reported an average liquids price of $108.93 per barrel for the second quarter, up from an average price of $106.09 per barrel in the second quarter of 2013.
Natural gas prices rose even faster, to $6.03 per thousand cubic feet for the quarter, up from $4.03 per mcf during the second quarter of 2013. The large increase reflects the resumption of liquefied natural gas exports from the Kenai terminal.
ConocoPhillips spent $390 million on capital projects in Alaska during the second quarter, down from $415 million spent in the first quarter but up from $283 million spent in the second quarter of last year, reflecting a much-publicized increase in capital spending on projects including the Alpine West satellite and the Kuparuk Drill Site 2S.
The company reported a 35.6 percent effective income tax rate in Alaska during the quarter, the same rate paid in the first quarter of this year and the second quarter of last.
- ERIC LIDJI
See story in Aug. 10 issue, available online Friday, Aug. 8.