July 26—Houston’sConocoPhillips reported a $1.6 billion profit in the second quarter as the oil and gas producer returns to healthy profitability this year following the recent oil bust.
ConocoPhillips’ profit is a big improvement from a $3.4 billion loss during the same three months last year, but also from a smaller $900 million profit during the first quarter of 2018.
As oil prices rebound, ConocoPhillips said it’s upping its oil production volumes guidance for 2018, excluding disruptions in volatile Libya, but also increasing its capital spending projection from $5.5 billion to $6 billion for the year.
While ConocoPhillips continues to grow in regions from Texas to Alaska, the company has opted to focus lately on debt reduction, share buybacks and increased dividend payouts in order to appease investors and solidify a healthy bottom line.
“We’ve positioned ConocoPhillips to deliver top-tier performance through cycles by focusing on free cash flow generation and following clear priorities to maximize returns,” said Ryan Lance, chairman and chief executive officer. “We’re benefitting from higher oil prices, but also driving underlying cash flow expansion.”