ConocoPhillips warned investors yesterday that its 1Q output may not be up to current expectations sending shares slightly lower in both regular and after hours trading. Blaming OPEC production cuts and lower crude prices, the company does not expect to have averaged the 2.05 million barrels a day it produced during 4Q06. On the plus side, the company said higher natural gas prices and "significantly higher" global refining margins should help out its 1Q profits. Still, the company warned that "narrowing crude differentials and the periodic pricing of Brent at a premium to WTI during the quarter are expected to moderate realized margins at some of the company's domestic refineries." The company is set to report on April 25.
Sources: Press Release, MarketWatch, AP, Wall Street Journal
Commentary: Why ConocoPhillips is a Buy and Hold • Refined Oil Price Points Up • ConocoPhillips Q4 Output Below Forecast
Stocks/ETFs to watch: ConocoPhillips (COP). Competitors: Exxon Mobil (XOM), Chevron (CVX), Sunoco (SUN), BP plc (BP). ETFs: Energy Select Sector SPDR (XLE), Vanguard Energy ETF (VDE), PowerShares Dynamic Energy Exploration & Production Port (PXE)
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