ConocoPhillips on Wednesday reported that net profit surged in the first quarter, reaching $3.29 billion ($2.34/share), compared with profit of $2.91 billion ($2.05) in 1Q2005. To perhaps inoculate itself from criticism about soaring oil company profits, ConocoPhillips also reported that it reinvested 141% of the net income into developing new resources and its global refining business.

The Exploration and Production (E&P) segment’s net income was $2.55 billion, up sequentially from $2.43 billion in the fourth quarter, but well ahead of $1.79 billion reported in 1Q2005. The acquisition of Burlington Resources Inc. closed on the final day of the 2006 quarter, March 31, and its earnings and operating results were not reflected in the quarter.

“We ended the quarter by successfully completing the acquisition of Burlington Resources and are pleased with the progress toward integrating the combined companies,” said CEO Jim Mulva in a statement. “This transaction establishes ConocoPhillips as the leading natural gas producer in North America, with a portfolio comprised mainly of high-quality, long-life natural gas reserves.”

In the upstream business, ConocoPhillips produced 1.93 million boe/d, including 1.61 million boe/d from its E&P segment and 0.32 million boe/d from its LUKOIL investment segment. Total daily production, including Canadian Syncrude operations and excluding LUKOIL, averaged 1.61 million boe/d, up slightly from the 1.6 million boe/d reported for the same period a year ago. Increased production from the Timor Sea, Venezuela and the U.S. Lower 48 was partially offset by an unscheduled shutdown at the Alaskan Prudhoe Bay operations, as well as lower volumes from Canada, Vietnam and Indonesia.

Total U.S. oil and gas output in the quarter reached 636,000 boe/d, down slightly from 648,000 boe/d in 1Q2005 but slightly ahead of 633,000 boe/d in 4Q2005. Natural gas production in Alaska and the Lower 48 climbed to 1.43 Bcf/d in the quarter, compared with 1.35 Bcf/d reported in 1Q2005. U.S. gas prices in the quarter reached $7.42/Mcf/d, up from $5.57/Mcf reported in 1Q2005.

Gas liquids production in the United States totaled 14,000 bbl/d, up from 13,000 bbl/d from the same period a year ago, and up from 9,000 bbl/d in 4Q2005. Canadian gas production reached 424 MMcf/d, flat compared with the previous quarter but ahead of 417 MMcf/d reported for the same period a year ago.

Kenai, AK liquefied natural gas sales totaled 128 MMcf/d in the quarter at a sales price of $6.45 MMcf/d. The total was down from the 132 MMcf/d reported for the same period a year ago, but the price was lower then at $5.27 MMcf/d.

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