ConocoPhillips Production Falls
ConocoPhillips says its global production fell as expected in the second quarter because of planned maintenance, but it benefited from higher oil and natural gas prices.
In an overview of market conditions for the April-June period, ConocoPhillips also said its worldwide refining margins in the second quarter probably improved from the first quarter. But the company said the improvement was offset by lower margins for “secondary” refined products such as fuel oil, natural gas liquids and petroleum coke.
Global marketing margins for the second quarter are expected to be lower than the first, primarily due to market prices lagging increases in expenses.
In recent quarters, higher crude costs have squeezed profits at the refining arms of companies like ConocoPhillips, which don’t produce enough crude themselves to satisfy their refining operations and have to buy supplies at market prices. and what the company makes on refined products such as gasoline.
ConocoPhillips is scheduled to report second-quarter earnings July 23. Its shares fell $1.09 to $89.27 in afternoon trading.
