Houston-based ConocoPhillips said Wednesday its commodity prices climbed, and oil and gas production was more than 29% higher in the first quarter than the final three months of last year as energy demand rose.

In an interim update as the first quarter drew to a close, the world’s largest independent said production in 1Q2021 averaged 1.47-1.49 million boe/d. About 50,000 boe/d of Lower 48 production was lost because of the “unplanned weather impacts experienced throughout the Lower 48 as a result of Winter Storm Uri.” 

Production in the Lower 48, particularly the Permian Basin, which is the independent’s bread and butter, was fully restored in March.

Global oil output averaged 700,000 b/d, while natural gas production was about 3.17 Bcf/d. 

In the Lower 48, oil and gas production averaged 710,000 boe/d. Average oil production was 410,000 b/d, while natural gas liquids (NGL) was 80,000 b/d. Around 1.32 Bcf/d of natural gas also was produced in the Lower 48 during the period.

In Alaska, production in the first quarter averaged 205,000 boe/d, including 190,000 b/d of oil. Canada output averaged 100,000 boe/d.

Average prices in 1Q2021 jumped from three months earlier to $43-45/boe from $33.21. Global crude oil prices averaged $56-58/bbl, while realized natural gas prices were $4.30-4.50/Mcf.

For the Lower 48, crude prices averaged $56 in the first quarter, while NGL pricing was $24/bbl. Lower 48 natural gas fetched an average price of $3.80.

ConocoPhillips reiterated its production forecast for 2021 remains at around 1.5 million boe/d. It also is guiding for capital spending of $6.2 billion for the year. Capital spending in 1Q2021 was estimated at $1.21-1.29 billion.

For 1Q2021, ConocoPhillips expects to record one-time transaction and restructuring-related expenses associated with the $9.7 billion takeover of Permian heavyweight Concho Resources Inc. 

The expected total impact to cash from operations, in combination with some hedging impacts, was estimated at $1 billion. The total included $800 million “related to settling all oil and gas positions acquired from Concho,” including $500 million when the acquisition closed in mid-January.