ConocoPhillips beats Q2 profit on higher oil production, prices

(Reuters) -U.S. oil and gas producer ConocoPhillips (NYSE:) posted a second-quarter profit that beat Wall Street estimates on Thursday, benefiting from higher output and oil prices.

The beat comes as ConocoPhillips is pursuing a $22.5 billion takeover of Marathon Oil (NYSE:), one of the largest deals of the quarter that is currently under review by the Federal Trade Commission. The combination would create a company pumping 2.26 million barrels of oil and gas per day, and add 1.32 billion barrels of proved reserves to ConocoPhillips’ 6.8 billion.

However, ConocoPhillips’ third-quarter production is expected to be lower than that in the second quarter due to the impact of planned turnarounds in Canada, Lower 48, Alaska, Norway, Malaysia and Qatar.

It forecast its full-year output to be between 1.93 million and 1.94 million barrels of oil equivalent per day (boepd), compared with its prior range of 1.91 million to 1.95 million boepd.

Still lower than its second-quarter production, which rose to 1.95 million boepd from 1.81 million boepd in the year-ago quarter.

The company updated its capital expenditure for the year to reflect progress on its project in Alaska and increased Lower 48 partner-operated activity. ConocoPhillips’ total average realized prices rose 4% to $56.56 per barrel of oil equivalent (boe) in the reported quarter.

The Houston, Texas-based company posted adjusted earnings of $1.98 per share for the quarter ended June 30, compared with analysts’ average estimate of $1.96, according to LSEG data.