ConocoPhillips said Tuesday that expected seasonal declines and scheduled maintenance activities in North Sea and Alaskan operations will send third quarter oil and natural gas production 7% lower sequentially over second quarter output. The company will issue its quarterly report on Oct. 27.

Full-year production is still forecast to be about 1.56 MMboe/d, including Syncrude operations. Third quarter exploration expenses are expected to tally $200 million, which would include impacts from Conoco’s well in Azerbaijan. Conoco also expects to report lower refining margins and a higher capacity utilization rate.

Meanwhile, corporate expenses from continuing operations will be impacted by a $43 million, after-tax charge, related to premiums paid during the quarter on the early retirement of debt. The company’s debt balance is projected to be $15.5 billion for the quarter. The available cash balance is expected to be approximately $3 billion, up from $804 million at the end of the second quarter.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.