(Reuters) – ConocoPhillips on Thursday raised its forecast for annual shareholder return by $5 billion (4.91 billion euros) after its quarterly profit beat estimates amid soaring energy prices.
The title of the American oil producer took 3% on Wall Street in pre-market trading.
Oil and gas prices have soared due to Western sanctions on Russia, which have cut supply amid a rebound in demand from pandemic lows.
A barrel of Brent crude, the world’s benchmark, was trading at $96.81 on Thursday, up about 25% this year.
Houston, Texas-based ConocoPhillips’ average price per barrel of oil equivalent rose 77% to $88.57 in the quarter from a year earlier. The company has not hedged any of its oil and gas sales to make the most of rising market prices, she said.
ConocoPhillips now plans to return $15 billion to shareholders this year, joining big oil companies like Chevron that have increased payouts after years of pressure due to poor returns.
The company, which kept its spending guidance intact, slightly lowered its full-year production outlook due to uncertainty in Libya.
The company’s second-quarter adjusted earnings of $3.91 per share beat Wall Street estimates of $3.80 per share, according to Refintiv IBES data.
(Reporting Shariq Khan in Bangalore; French version Elitsa Gadeva, editing by Kate Entringer)
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