2023-11-02 21:21:53
Oil and gas company Southwestern Energy beat third-quarter profit estimates Thursday as higher oil production offset lower prices.
Oil demand remained strong, helped by low U.S. inventory levels and rising exports, which helped keep supply tight despite Saudi Arabia’s voluntary production cuts and the Russia, the two main oil producers in OPEC+.
Southwestern’s total oil production in the quarter increased regarding 12% from a year earlier to 1.31 million barrels of crude oil.
The average realized price for oil, excluding derivatives, fell regarding 16% from the previous year, to $71.09 per barrel of crude oil.
The price of Brent fell regarding 13% in the third quarter since peaking last year during the Russia-Ukraine conflict, putting pressure on prices.
The company reported adjusted earnings of 10 cents per share for the quarter ended September 30, compared with analysts’ average estimate of 7 cents per share.
A 5.6% growth in its production of natural gas liquids, which includes ethane, propane and butane, among others, during the quarter also contributed to the company’s profits.
Southwestern’s total production fell 4% to 425 billion cubic feet equivalent (bcfe) due to lower natural gas production as demand declined due to warmer weather.
The company expects total production for the fourth quarter to be between 400 and 420 billion cubic feet. (Reporting by Tanay Dhumal in Bengaluru; Editing by Krishna Chandra Eluri)
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