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Houston-based ConocoPhillips said Wednesday its commodity prices climbed, and oil and gas production was more than 29% higher in the first quarter than the final three months of last year as energy demand rose.
In an interim update as the first quarter drew to a close, the world’s largest independent said production in 1Q2021 averaged 1.47-1.49 million boe/d. About 50,000 boe/d of Lower 48 production was lost because of the “unplanned weather impacts experienced throughout the Lower 48 as a result of Winter Storm Uri.”
Production in the Lower 48, particularly the Permian Basin, which is the independent’s bread and butter, was fully restored in March.
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Global oil output averaged 700,000 b/d, while natural gas production was about 3.17 Bcf/d.
In the Lower 48, oil and gas production averaged 710,000 boe/d. Average oil production was 410,000 b/d, while natural gas liquids (NGL) was 80,000 b/d. Around 1.32 Bcf/d of natural gas also was produced in the Lower 48 during the period.
In Alaska, production in the first quarter averaged 205,000 boe/d, including 190,000 b/d of oil. Canada output averaged 100,000 boe/d.
Average prices in 1Q2021 jumped from three months earlier to $43-45/boe from $33.21. Global crude oil prices averaged $56-58/bbl, while realized natural gas prices were $4.30-4.50/Mcf.
For the Lower 48, crude prices averaged $56 in the first quarter, while NGL pricing was $24/bbl. Lower 48 natural gas fetched an average price of $3.80.
ConocoPhillips reiterated its production forecast for 2021 remains at around 1.5 million boe/d. It also is guiding for capital spending of $6.2 billion for the year. Capital spending in 1Q2021 was estimated at $1.21-1.29 billion.
For 1Q2021, ConocoPhillips expects to record one-time transaction and restructuring-related expenses associated with the $9.7 billion takeover of Permian heavyweight Concho Resources Inc.
The expected total impact to cash from operations, in combination with some hedging impacts, was estimated at $1 billion. The total included $800 million “related to settling all oil and gas positions acquired from Concho,” including $500 million when the acquisition closed in mid-January.
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