By Arathy Somasekhar and Mrinalika Roy
(Reuters) -ConocoPhillips slightly raised its full-year output expectations on Thursday, even as it posted a lower-than-expected quarterly profit.
Quarterly reports from U.S. oil producers have been dented by weak oil and gas prices in recent months, though higher production has helped offset some of the pain.
ConocoPhillips said production rose 6% to 1.81 million barrels of oil equivalent per day (boepd) in the second quarter, at the higher end of the company’s prior guidance, with record output in the U.S. Lower 48 states.
The company, however, was unseated as the second-largest producer in the Permian basin, the nation’s top shale region, by Pioneer Natural Resources.
ConocoPhillips’ 709,000-boepd production in the Permian in the second quarter fell just short of Pioneer’s 711,000 boepd in the same period. Oil major Chevron continued to retain the top spot in the basin with a record 772,000-boepd output.
The better-than-expected second quarter output helped ConocoPhillips raise its full-year production outlook for a second time this year and now expects it to range between 1.80 million boepd and 1.81 million boepd. The company in May said it expected production between 1.78 million boepd and 1.80 million boepd.
ConocoPhillips also narrowed its capital spending guidance range to between $10.8 billion and $11.2 billion, from previous guidance of $10.7 billion to $11.3 billion.
Earnings in the second quarter more than halved to $1.84 per share as the average price for its oil and gas fell 39% to $54.50 per barrel of oil equivalent in the quarter.
Analysts had on average expected earnings of $1.95 per share, according to Refinitiv data.
Shares of the company were down 2.2% at $113.01 in premarket trading.
Rival Occidental Petroleum on Wednesday had also raised its full-year production forecast, but missed second-quarter profit expectations due to the slide in prices.
(Reporting by Arathy Somasekhar in Houston, Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli, Toby Chopra and Jonathan Oatis)