ConocoPhillips’ upstream unit, comprised of crude oil, natural gas and natural gas liquids production on a boe/d basis, is expected to be near first quarter levels, the company said last week in an interim second quarter report. While the results benefited from a full quarter’s output from Venezuela facilities and new wells coming online in China, the gains were offset by normal seasonal declines in Alaska, Norway and the United Kingdom.

The major’s midstream results are expected to decline from the first quarter because of lower margins, the company said, reflecting its 30.3% interest in Duke Energy Field Services, as well as consolidated midstream operations.

Corporate charges from continuing operations are “in line with amounts previously estimated,” and will be impacted by merger-related expenses and foreign exchange gains. The company’s debt balance at the end of the second quarter is expected to be $17.6 billion, compared with $18.2 billion at the end of the first quarter and $19.8 billion at the end of 2002. “This balance sheet improvement reflects strong cash flow from operations and disciplined capital spending,” it said in a statement.

ConocoPhillips is selling its retail sites in New York and New England, and the sale is expected to be completed in the third quarter. Those assets are included in discontinued operations and are associated with the company’s previously announced plan to dispose of a substantial portion of its U.S. company-owned marketing sites in 2003.

By the end of this year, ConocoPhillips said it anticipates that its synergy run rate will reach $1.25 billion per year. Benchmarks used to measure progress will be discussed in the earnings release and conference call, now scheduled for July 30.

©Copyright 2003 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.