Fourth quarter profits for Conoco were up 77%, benefiting fromits strongest oil and gas prices in almost a decade. TheHouston-based energy company said that before special items, netincome was $574 million, or 91 cents per diluted share, whichtopped First Call/Thomson Financial’s consensus of 85 cents ashare. In 1999, quarterly earnings were $324 million, or 51 centsper share.

Revenues reached $10.4 billion, up from $8.2 billion in thefourth quarter of 1999. Natural gas prices averaged $6.46/MM Btu,which is more than double the $2.48 last year. Crude oil for thequarter averaged $31.96 a barrel, up from $24.56 a year ago.

“It was another spectacular quarter, appropriately capping thebest year in the company’s 125-year history,” said CEO Archie W.Dunham. “The quarter’s strong earnings were driven by highernatural gas and crude oil prices, robust refining and natural gasliquids margins and higher production volumes.”

Dunham said the company expects to exceed the high end forreserve replacement for 2000, which he estimated to be between 125%and 135% of oil and gas produced.

In North America, Conoco’s Gulf of Mexico commercial prospectswere confirmed on its Magnolia deepwater prospect, which couldyield more than 150 MM boe in future production. Last September,Conoco and Shell announced the Princess sub-salt discovery near theUrsa field, with potential reserves estimated of more than 200 MMboe.

For the year, Conoco’s upstream earned a record $1.8 billion, up116% on higher crude oil and natural gas prices, increased volumesand lower dry hole costs. U.S. earnings alone were $679 million, up118%. Dunham said that the first quarter of 2001 is also expectedto be another “very strong” earnings quarter.

©Copyright 2001 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.