(Reuters) - ConocoPhillips (NYSE:COP) on Thursday beat Wall Street's third-quarter profit estimates, as the U.S. shale producer benefited from higher output, and raised its quarterly dividend by 14%.
Benchmark Brent crude averaged $85.67 a barrel in the first three months of 2023, nearly 13% lower than last year, but still well above the levels that allow oil and gas producers to drill profitably.
Crude prices had surged to multi-year highs last year after Russia's invasion of Ukraine upended global energy markets.
ConocoPhillips said production for the third quarter was 1.806 million barrels of oil equivalent per day (boepd), an increase of 52 thousand (boepd) from a year earlier.
"For the third consecutive quarter, we achieved record production," CEO Ryan Lance said in a statement.
The largest U.S. independent oil company expects fourth-quarter production to be between 1.86 million and 1.90 million boepd.
Full-year production is expected to be about 1.82 million boepd, higher than its prior outlook of 1.80 to 1.81 million boepd, due to the Surmont acquisition.
ConocoPhillips purchased remaining 50% interest in Surmont oil sands asset from France's TotalEnergies (EPA:TTEF)' Canada unit.
The company's earnings were, however, pressured by lower crude prices. It said total average realized price was $60.05 per barrel of oil equivalent (boe), 28% lower than a year earlier, which hurt the company's earnings.
Larger rivals Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) posted third-quarter results last week that took a hit from lower oil prices.
Excluding items, ConocoPhillips reported a profit of $2.16 per share for the three months ended Sept. 30, compared with analysts' average estimate of $2.08 per share, according to LSEG data.