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ConocoPhillips has reported strong financial results for the second quarter of 2021 due to higher crude prices and increased production.

In the three-month period to June, the company reported earnings of $2.1bn, or $1.55 a share. The figure was $300m in the same quarter a year ago.

Adjusted earnings totalled $1.7bn in the quarter, compared with an adjusted loss of $1bn in Q2 2020.

ConocoPhillips ended the quarter with combined cash, cash equivalents and restricted cash totalling $7bn while short-term investments amounted to $2.3bn.

The company’s production in the period excluding Libyan output was 1,547 thousand barrels of oil equivalent per day (Mboed). The figure represents a 566Mboed increase from the same quarter a year ago.

In the third quarter, the US-based firm expects production to be in the range of 1.48MMboed to 1.52MMboed.

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By GlobalData

The quarterly results follow a market update where the company unveiled its ten-year plan. Based on a reference oil price of $50 a barrel West Texas Intermediate at 2020 real prices, the plan offered the company’s business outlook after the Concho acquisition.

Concurrently, ConocoPhillips reduced its capital and adjusted operating cost guidance for this year. It also intends to increase 2021 share repurchases by $1bn.

ConocoPhillips chairman and CEO Ryan Lance said: “We have a stronger, more flexible asset base and greater underlying efficiency resulting from the Concho acquisition and the restructuring work we’ve performed throughout our company.

“Our updated outlook comes at a time that we believe is a defining moment for the sector. ConocoPhillips uniquely meets this moment with a credible multi-year plan, continued strong execution, resilience with unhedged upside, a track record of peer-leading returns on and of capital, and a clear commitment to ESG excellence.”

Last month, Contango Oil & Gas signed a deal to acquire certain assets in the US from ConocoPhillips.