ConocoPhillips reported adjusted earnings of $543 million from its Alaska operations in the first quarter, down quarter-over-quarter and year-over-year on declining production.

The most prolific oil company in Alaska saw its adjusted earnings in the state drop 8.7 percent from the fourth quarter of 2012 and 12.4 percent from the first quarter of 2012.

With liquids prices remaining relatively stable in recent quarters, oil production continues to be the driving factor behind ConocoPhillips’ profits. And it is driving them down.

ConocoPhillips produced 218,000 barrels of oil equivalent per day in Alaska in the first quarter, down from 222,000 boe per day (or 1.8 percent) in the fourth quarter of last year and 236,000 boe per day (or 7.6 percent) in the first quarter of 2012. ConocoPhillips said this drop “primarily” reflected normal field decline, as opposed to maintenance work.

ConocoPhillips reported an effective income tax rate of 35.5 percent for Alaska during the first quarter. The figure jumps to 61.6 percent when other taxes are included.

ConocoPhillips spent $262 million in Alaska during the first quarter, up from $232 million in the fourth quarter of last year and $186 million in the first quarter of 2012.

ConocoPhillips reported $135 million in depreciation, depletion and amortization expenses in Alaska in the quarter, up slightly quarter-over-quarter and year-over-year.

—Eric Lidji

See story in April 28 issue, available online at 11 a.m., Friday, April 26 at www.PetroleumNews.co